Citigroup reports reports its first quarterly loss since 1998. reveals writedowns due to subprime losses of $18.1 billion.
CEO Vikram Pandit said "Our financial results this quarter are clearly unacceptable. Our poor performance was driven primarily by two factors – significant write-downs and losses on our sub-prime direct exposures in fixed income markets, and a large increase in credit costs in our U.S. consumer loan portfolio."
Pandit revealed steps beign taken to improve capital base which includes Raising a total of $12.5 billion of capital through the sale of convertible preferred securities in a private offering - including a $6.88 billion investment from the Government of Singapore Investment Corporation Pte Ltd plus investment from Kuwait Investment Authority and the Weill family.
Citigroup swings to loss on $18.1 billion charge; cuts payout 41%
Posted by alanwellspun (#1) 1482 days ago (http://www.marketwatch.com)Who Voted for this Story
Credit crash is a social news site for the credit markets.