Good Evening friends,
World stock markets are down and one more news leading stock markets towards more down. Citygroup Inc which own city bank said on Thursday that it lost $ 2.8 billion in the third quarter.
Citigroup Inc. suffered its fourth straight quarterly loss and cut another 11,000 jobs, drubbed again by the relentless downturn in housing and turmoil in the financial markets.
The New York-based bank said Thursday it lost $2.8 billion, or 60 cents per share, in the third quarter, compared with a profit of $2.2 billion, or 44 cents per share, a year ago. The deficit for the June-to-September period brings Citi’s total losses over the past 12 months to $20.2 billion.
The shortfall for the quarter was narrower than anticipated. Analysts polled by Thomson Reuters expected a loss of 70 cents per share.
But the results were hardly reassuring. Citi wrote down $4.4 billion in investments, plus another $612 million from a settlement related to auction-rate securities; recorded $4.9 billion in credit losses; and took a $3.9 billion charge to boost reserves. The bank has written down the value of its investments tied to souring mortgages and other bad debt by some $51 billion since this time last year.
Shares fell 14 cents to $16.09 in premarket trading.
Associated Press ,Thursday, October 16, 2008 (New York)
