Goldman Says Citigroup Faces $15 Billion CDO Write-downs

[mahatmakanejeeves]

Source: The Wall Street Journal.

Goldman Says Citigroup Faces
$15 Billion CDO Write-downs

By KIMBERLY A. VLACH
November 19, 2007 8:27 a.m.

LONDON -- Citigroup Inc. stock was downgraded to "sell" from a "neutral" rating by Goldman Sachs Group Inc. Monday, with the brokerage estimating the group will incur $15 billion in write-downs on collateralized debt obligations over the next two quarters.

Citigroup will feel "the pain" of a worsening consumer-credit environment in its retail banking and cards divisions, Goldman Sachs said in a research note.

"Given the firm's exposure to CDOs, subprime mortgages, SIVs and leverage loans, it will be challenging for the firm to achieve its desired targets," said Goldman Sachs.

The group is facing mounting pressure across many businesses due to deteriorating consumer and housing metrics.

Read more: http://online.wsj.com/article/SB119547599666497812.html?mod=googlenews_wsj

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I should have sold mine six months ago.