Citi Could Write Down Up to $24 Billion

Discussion in 'Wall St. News' started by ASusilovic, Jan 14, 2008.

  1. Citigroup could write down as much as $24 billion due to subprime and credit-related losses, CNBC has learned. In addition, an estimated 20 thousand layoffs will be part of a comprehensive plan to slash costs and raise capital.

    The plans will be unveiled Tuesday, when it reports fourth-quarter earnings. At the same time, Citigroup could also announce that it is cutting its dividend payment.

    Citibank also intends to raise as much as $15 billion from various foreign and domestic entities including Saudi Arabian Prince Alwaleed bin Talal, Citigroup's largest individual shareholder, as America's biggest bank grapples with heavy mortgage market losses.

    Alwaleed has owned his Citi stake since the early 1990s and helped engineer a previous rescue plan for the bank more than a dozen years ago. According to a report on the Wall Street Journal's Web site, he is likely to keep his total stake in the bank below 5 percent to avoid regulatory scrutiny.
  2. No problem for citi, they have their guys in middle east and china throwing money at them. Just feel it for the average Joe that will be added to the unemployment list.
  3. Yep. Exactly.
  4. These write downs will be positive I feel at least in the short term as many will see them as a line in the sand expect a strong bounce