Citit loses 1.4 bil in CC debt

Discussion in 'Wall St. News' started by dinoman, Oct 31, 2008.

  1. dinoman


    Citigroup loses $1.4 bln on securitizations
    Friday October 31, 8:24 pm ET

    NEW YORK (Reuters) - Citigroup Inc (NYSE:C - News) lost $1.4 billion from packaging credit card loans into bonds in the third quarter, a regulatory filing showed on Friday.
    The loss reflects in part the worsening performance of credit card loans as the U.S. economy deteriorates. In the third quarter of 2007, Citigroup earned $169 million from packing credit card loans into bonds.

    Citigroup said earlier this month that global credit card revenue had declined 40 percent, partly due to lower securitization results, but it did not disclose at the time the precise figure.

    Credit card lenders are broadly expected to suffer higher credit losses as rising unemployment makes it increasingly difficult for some borrowers to pay their bills.

    (Reporting by Dan Wilchins, editing by Richard Chang)

    Its not over folks, so put down the pipe! I think we have room to 10,276 on the DOW though for the bounce,