Thursday, October 16, 2008

Citigroup Posts Fourth Consecutive Loss

The financial crisis has amplified economic ailments that are now intensifying, vanishing paychecks, falling house prices and diminished spending. The bailout would not lift the economy and continued weakness was certain.

Citigroup Inc. suffered its fourth straight quarterly loss and cut another 11,000 jobs, drubbed again by the relentless downturn in housing and turmoil in the financial markets.

With $2.05 trillion in total assets now, Citigroup has officially forfeited the title of largest bank by assets, falling behind JPMorgan Chase's $2.25 trillion in total assets.

The New York-based bank announced lost $2.8 billion, or 60 cents per share, in the third quarter, compared with a profit of $2.2 billion, or 44 cents per share, a year ago. The deficit for the June-to-September period brings Citi's total losses over the past 12 months to $20.2 billion.

The shortfall for the quarter was narrower than anticipated. Analysts polled by Thomson Reuters expected a loss of 70 cents per share.

Citigroup wrote down $4.4 billion in investments, plus another $612 million from a settlement related to auction-rate securities; recorded $4.9 billion in credit losses; and took a $3.9 billion charge to boost reserves. The bank has written down the value of its investments tied to souring mortgages and other bad debt by some $51 billion since this time last year.


Anonymous said...

Most of the banks are the financial professional bluffers.

Anonymous said...

Bankers are professional beggars to perform Beggar's Opera and it is the basic cause of financial crisis.

superbrain said...

The financial crisis prof a reality that the financial experts were making fool of the public. In fact they are exploiting the public for their self benefit. Base on their pay, allowances,entertainment fees etc. Is it justified for their professional code of ethics? Why they take no responsibility for the mismanagement?