Citigroup's $9.8bn sub-prime loss

[eppur_se_muova]

Source: BBC

US banking giant Citigroup has reported a $9.83bn (£5bn) net loss for the last three months of 2007.

Chief executive Vikram Pandit said the loss had been caused by a $18.1bn exposure to bad mortgage debt and was "clearly unacceptable".

The company, the largest banking group in the US, said its revenues for the fourth quarter were down 70% from a year earlier to $7.2bn.

Mr Pandit has pledged to turn around Citigroup's fortunes.

Read more: http://news.bbc.co.uk/2/hi/business/7188909.stm

[sunonmars]

1. ouch... there go those jobs down the toilet....

What a big fuck off mess the economy is becoming.

[Eurobabe]

2. Watch the markets go up on that one!

Will just prove that the stock market is another word for "casino." :eyes:

[JuniorPlankton]

3. The market is sharply down at the moment (futures) n/t

[Eurobabe]

5. overseas markets all down for the day

[underpants]

4. Wow that's like Iraq type money

as in LOST in Iraq type money. I didn't know the private sector could match these yahoos in...oh I forgot they all went to the same business school together

[Broadslidin]

6. Thank Goodness, Prince Alwaleed bin Talal bin Abdulaziz Alsaud has decided to Rescue Citgroup....!

with assurances, 20,000 Citigroup employees will be dumped.

When Glass-Steagal was disposed of during the $Clinton$ reign,
Citibank immediately changed its name to Citigroup.
(thereby giving the investor con game, rebirth)

Tis the Amurikan Way of doing 'The :party: Biz'.

[DeepModem Mom]

7. Citigroup Loss Raises Anxiety Over Economy: "staggering fourth-quarter loss of $9.83 billion"

Source: New York Times

By JENNY ANDERSON and ERIC DASH
Published: January 16, 2008

Citigroup, the nation’s largest bank, reported a staggering fourth-quarter loss of $9.83 billion on Tuesday and issued a sobering forecast that the housing market and the broader economy still have not bottomed out. To shore up their financial condition, Citigroup and Merrill Lynch & Company, which has also been rocked by the subprime mortgage debacle, both were forced again to go hat-in-hand for cash infusions from investors in the United States, Asia and the Middle East, for a combined total of nearly $21.1 billion.

Citigroup’s gloomy news will most likely ratchet up the anxiety of consumers and workers already unnerved over ominous signs that the housing crisis could plunge the economy into a recession. In another troublesome sign, the government reported that retail sales in December declined for the first time since 2002.

Growing pessimism led to another sharp sell-off in stocks, which fell about 2 percent for the day and are now down about 6 percent since the beginning of 2008, the third worst start for a year since 1926.

More bad news is coming, with Merrill Lynch expected to report sizable losses later this week and major financial institutions like Bank of America retrenching segments of their business. These moves add to concerns that financial institutions will be forced to pull back on lending at a time the economy most needs access credit to help cushion against a downturn....

***

Concern is growing in the markets that a perfect storm has formed. The fear is that financial institutions will continue to take large write downs as bad loans mount, while consumers, facing higher energy costs, falling house prices and a bleak outlook for job growth, will reign in spending more....

Read more: http://www.nytimes.com/2008/01/16/business/16bank.html?hp

[bronxiteforever]

8. Major Scary Story-K & R

[ursi]

9. how can that be? they got Harry Reid and Hillary to pass the bankruptcy

bill to hold americans hostage during times of trouble? We should do the same for them?

[Barrett808]

10. And off to the Greatest Page. n/t

[NashVegas]

11. Hey! Remember That $1.6 Trillion Tax Cut?

That's $1.6 trillion the Fed no longer can use to bail your sorry asses.

[DLnyc]

12. "the third worst start for a year since 1926"

Also, if I'm not mistaken:

Last time Republicans held presidency and both houses of congress: late 1920's
Last time banks were largely unregulated and investing in stocks: late 1920's

Theoretically, there might be a connection between Republican policies of deregulating financial businesses, robber baron-style economic environment, government for the rich and large corporations against the poor and labor, and bad outcomes for the economy. That's just theoretical, though, of course. So far.

[aquart]

14. You noticed.

[DLnyc]

17. Yeah, funny that coinkydink there.

[scarface2004]

13. that s odd

according to their perspectus the ceo, joe bumfuck, got a $9.83 billion bonus on 12/31!!!!

[w8liftinglady]

15. a few addendums

http://www.marketwatch.com/news/story/former-citigroup-ceo-prince-get/story.aspx?guid={18A5CA25-AB0A-4AB9-971C-2765607AB68E}
Departing Citi CEO getting $29.5 mln exit deal


http://money.cnn.com/2003/03/03/news/citigroup_sallie/index.htm
7M for Citigroup's Krawcheck



http://www.usatoday.com/money/companies/management/2003-03-31-ceopay2_x.htm
..Citigroup's Sanford Weill told directors not to give him a bonus.

Their actions, however egalitarian, were largely ceremonial, critics say. Weill received options worth up to $48.7 million and cashed in options for $11.8 million. Forbes ranks him 185th among wealthy Americans, worth $1.1 billion.

http://www.innercitypress.org/citi.html
a literal TON of shit on Citigroup


bastards...unfortunately,the people they've lended money to will suffer,not these bastards.

[DeepModem Mom]

16. Thanks very much for these additions, w8liftinglady. nt