This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7354266.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Citigroup sees second giant loss | Citigroup sees second giant loss |
| (30 minutes later) | |
| Citigroup has suffered a second massive loss as the credit crisis continues to take its toll on the biggest US bank. | Citigroup has suffered a second massive loss as the credit crisis continues to take its toll on the biggest US bank. |
| It made a loss of $5.11bn (£2.7bn) in the first quarter, although this was smaller than the $9.8bn loss reported in the final three months of 2007. | It made a loss of $5.11bn (£2.7bn) in the first quarter, although this was smaller than the $9.8bn loss reported in the final three months of 2007. |
| The results included about $12bn of write-downs for sub-prime mortgages and other risky assets. | The results included about $12bn of write-downs for sub-prime mortgages and other risky assets. |
| Lenders worldwide have written off more than $200bn tied to investments hit by the credit crisis. | Lenders worldwide have written off more than $200bn tied to investments hit by the credit crisis. |
| "Our financial results reflect the continuation of the unprecedented market and credit environment," said Citigroup chief executive Vikram Pandit. | |
| 'Cathartic quarter' | |
| The loss was slightly deeper than many analysts had expected but European stock markets rose in relief there were no nasty surprises. | The loss was slightly deeper than many analysts had expected but European stock markets rose in relief there were no nasty surprises. |
| "It's a cathartic quarter," said Arthur Hogan, chief market analyst at Jefferies & Co in New York. | |
| Citigroup shares rose 6% to $25.46 in pre-market trade before the official Wall Street open. | Citigroup shares rose 6% to $25.46 in pre-market trade before the official Wall Street open. |
| Earlier this week, Citigroup rival Merrill Lynch said it lost $1.96bn in the first quarter and unveiled plans to cut about 4,000 jobs worldwide. | |
| Merrill's results included about $4.5bn of sub-prime related write-downs. | |
| Citigroup's revenues plunged 48% to $13.2bn as the firm wrote down the value of assets linked to sub-prime mortgages - those given to people with poor or patchy credit histories. | |
| Of the write-downs, $6bn was directly related to the sub-prime market, with the remainder due to other assets and exposure affected by the credit crisis. | |
| It also saw a $3.1bn increase in consumer credit costs due to higher default rates on mortgages, unsecured personal loans, credit cards and auto loans. |