Thursday, October 16, 2008

Chronicles Of Depression 2.0: #342: CitiGroup

$2.8 Billion Loss at Citigroup on More Write-Downs
The investment bank, Citigroup, reported a $2.8 billion loss in the third quarter, the fourth consecutive period that the global banking giant has been swamped by write-downs on investments and steeper losses on consumer loans.

Citigroup took more than $13.2 billion in charges in the third quarter, bringing the total amount of write-offs and credit losses since the credit crisis began last year to more than $64 billion.

Emphasis added by me.

Vikram S. Pandit, Citigroup’s chairman and chief executive, said in a statement that the bank’s results reflected a “difficult environment” and write-downs as the bank sheds more than $400 billion in noncore operations, low-returning assets and toxic mortgages. Citigroup also eliminated 11,000 jobs in the third quarter, bringing the total number of layoffs to 23,000 this year,

Emphasis added by me.

Four-hundred billion -- inching toward half a trillion dollars.

And twenty-three thousand layoffs? They've done a good job of keeping it quiet.

Expect more losses.

Personally, I'm surprised CitiGroup still exists.

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