Financial Writedowns Increase, Citigroup $18.7 Billion
Posted on Thu 27th Dec, 2007 03:53:45 PM
This is important for those tracking the subprime crisis. Most big banks originally announced write downs of anywhere from $3 billion to $7 billion. Well, Citigroup (C) today announced that its “estimate” of 8 to 11 Billion is more realistically probably close to $19 Billion.
To handle this extra write-down Citigroup may be forced to cut dividend by some 40%. You can read more at Yahoo Finance.
If Citigroup is announcing this then you better believe the other big boys are on a similar path. C is down just over 3% as of this post trading at around $29.50.
More on this topic
(What's this?)
Bill Gross: sell risky assets and buy Treasuries
(naked capitalism, 9/22/09)
"Pay Czar" Refusing to Back Down Over Possible $100 Million Citi Bonus
(naked capitalism, 8/17/09)
Citibank: Opportunity in Cow Chip Before It Returns to Blue Chip Status
(Kirk's Market Thoughts, 8/27/09)