Daily Revolt

January 15, 2008

Citigroup May Cut Thousands of Jobs

Sounds like a recession to me:
Citigroup Inc. is expected to announce thousands of job cuts after posting dismal results for the fourth quarter, when the bank's mortgage-riddled portfolio lost billions of dollars in value.

Citigroup Inc. swung to a loss of nearly $10 billion in the fourth quarter as it took a write-down of $18.1 billion for bad bets related to the mortgage industry, the bank said on Tuesday.

On the hunt for cash, the nation's largest bank said Tuesday it also got a $12.5 billion investment from outside investors, including $6.88 billion from the Government of Singapore Investment Corp.

Other investors were Capital Research Global Investors, Capital World Investors, the Kuwait Investment Authority, the New Jersey Division of Investment, shareholder Prince Alwaleed bin Talal of Saudi Arabia and former chief executive Sanford Weill and his family foundation.

Citigroup also took a net charge of $3.31 billion for loan-loss reserves in its U.S. consumer credit business_ primarily for delinquencies on mortgages, credit cards and auto loans. A year earlier it reversed $127 million in loan-loss reserves. Citi cited increasing signs of weakness among the consumer—something many others have pointed to as a potential indicator of a recession.

- This is why we need the People's Platform

AddThis Social Bookmark Button

Links to this post:

Create a Link

<< Home