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Citigroup’s Sub-Prime Losses Total $18.1 Billion

January 16, 2008 02:09 PM
by findingDulcinea Staff
On Jan. 15, Citigroup published its reports for the fourth quarter of 2007; it lost $9.2 billion in three months. CEO Vikram Pandit points to the sub-prime mortgage crisis as the main culprit.

30-Second Summary

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Though the loss sounds monumental, the BBC reports that “analysts generally welcomed the results, as the $18.1 billion bad debt write down was less than market expectations of $20 billion.” 

The financial services giant also stated that it is set to receive $12.5 billion from foreign investors, including $6.88 billion from Singapore government investment arm GIC.

This is in addition to $7.5 billion gained from a deal with the Abu Dhabi Investment Authority in late November 2007.

Pandit said, “Our financial results this quarter are clearly unacceptable. We have begun to take actions to ensure that Citi is well positioned to compete and win across our franchises while effectively keeping a tight control over our business risks.”

Headline Links: Citigroup’s fourth-quarter 2007 financials

Background: Citigroup finds support abroad

Reactions: ‘Tight control’ is everything

Analysis: Citigroup gets downgraded

Opinion: ‘Too Big to Succeed?’

Related Topics: The sub-prime mortgage crisis

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