CREDIT CRASH
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.
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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.
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Comments
Writedowns are MORE than $18 billion. In the release they reveal U.S. consumer credit costs increased $4.1 billion. This is in addition to the Write-downs on sub-prime related exposures. Really the loss is around $22 billion which is close to worst case that was expected