Citi loses roughly $10B, slashes division By MADLEN READ, AP Business Writer
Tue Jan 15, 11:03 AM ET
Citigroup Inc. mislaid roughly $10 billion in last year’s last 3 months, the largest quarterly necessity in the 196-year history, as well as slashed the division as well as 4,200 jobs as it available the huge write-down for bad bets upon the debt industry.
The nation’s largest bank wrote down the worth of the portfolio by $18.1 billion as well as pronounced it was environment in reserve $4 billion to cover U.S. consumer credit defaults. It signaled serve problems in the consumer businesses as deflated home prices, tall appetite as well as food costs, as well as receiving flight stagnation import upon people’s capability to keep up with their payments.
The rebate of 4,200 jobs in the fourth entertain is in serve to 17,000 layoffs voiced in the spring, as well as arch monetary military officer Gary Crittenden pronounced during the discussion call which some-more pursuit cuts would be upon the way.
Chief Executive Vikram Pandit, who transposed Charles Prince in December,
said the fourth-quarter formula were “unacceptable”, as well as which he was “not nonetheless finished” in his examination of either any of the tellurian bank’s core operations need to be cut or sold.
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Also see —>
http://biz.yahoo.com/ap/080117/earns_merrill_lynch.html?printer=1
Reuters
Merrill posts misfortune entertain in the history
Thursday Jan 17, 12:53 pm ET
By Tim McLaughlin
NEW YORK (Reuters) – Merrill Lynch & Co Inc (NYSE:MER – News) reported about $16 billion in mortgage-related writedowns as well as adjustments upon Thursday in the misfortune entertain of the company’s history.
Merrill shares fell 8.3 percent to $50.51 as investors disturbed about some-more write-downs as well as the company’s bearing to capital-strapped down payment insurers.
The begin of the sepulchral year for investment promissory note fees as well as large bets upon subprime mortgages finished in gloomy fashion. Merrill’s fourth-quarter net detriment was $9.8 billion, or $12.01 the share, compared to year-ago distinction of $2.3 billion, or $2.41 the share.
For 2007, Merrill mislaid about $8 billion upon second-half write-downs as well as adjustments of about $24 billion. Lax risk government led to the ouster of Stan O’Neal as arch senior physical education instructor whilst scarcely halving the company’s marketplace capitalization.
Recently declared CEO John Thain pronounced in the discussion call the world’s largest brokerage will palliate risk receiving though which it has sufficient collateral to pierce brazen after $12.8 billion in infusions from U.S. as well as unfamiliar investors.
But Thain pronounced he could not guarantee the association will equivocate serve write-downs upon subprime mortgage-related positions.
He called the fourth-quarter formula “unacceptable.”
Thain pronounced there would be no thespian pursuit cuts as well as combined which the association is not meddlesome in offered the stakes in Bloomberg LP as well as item physical education instructor BlackRock Inc (NYSE:BLK – News).
Analysts approaching Merrill’s fourth-quarter write-down to land anywhere from $10 billion to $15 billion.
Actual indemnification enclosed $11.5 billion in write-downs upon U.S. collateralized debt obligations as well as subprime mortgage-related securities. The association additionally had to have the disastrous composition of $3.1 billion to simulate soured hedges with down payment insurers.
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see —> http://biz.yahoo.com/rb/080117/merrilllynch.html?.v=1
–> http://news.yahoo.com/s/ap/20080122/ap_on_bi_st_ma_re/wall_street_120&printer=1;_ylt=Av45fFL9O._._laakR5SHT9v24cA
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Well, just like in any industry, an organization wants to be the first to produce it, manufacture it, invent it, discover it, take credit for it OR report it !!!!
We as consumers tend to reward the first mover by giving him the maximum attention even if it is inaacuarte or partly accurate news. Advertising clicks & google are part of this nightmare – if that makes sense.
Now whether they are right in doing that, is simply a function of how much they are punished for reporting incorrect information; consumer memories are short and fickle and don’t tend to punish the reporters of incorrect informtion; we often deem that a simple public apology is sufficient and these organizations easily get away after an apology that costs them nothing (since not all consumers tally how many apologies the culprit issued).
The media has a hypocrital oath to publish the truth and not sensationalize for the sake of profit. But then, how many doctors, lawyers, or reporters & media companies abide by that.
A short answer to your question would have been a simple NO – but I just had to say more when someone cared to ask.