You write-off $400 million there, and $300 million over here, and another $200 million behind here, and then you’re starting to talk real money. Are these the actions of a viable entity? This POS bank has been a zombie since 2008. It needs to be liquidated. It’s shareholders and bondholders need to take the losses. The band is still playing, but this sucker is going down.
Citigroup to eliminate 4,500 jobs, says CEO Pandit
By Matthias Rieker
NEW YORK (MarketWatch) — Citigroup Inc. /quotes/zigman/5065548/quotes/nls/c C -3.09% Chief Executive Vikram Pandit said the bank plans to eliminate 4,500 jobs, starting in the fourth quarter.
The job cuts will be completed “over the next few quarters” and Citi will take a charge of about $400 million in the fourth quarter tied to those cuts, Pandit told investors during a Goldman Sachs conference in New York.
The CEO also said that the bank would take a $200 million charge tied to the valuation of Citi’s own debt if credit spreads remain as they were at market close Monday. “I should note, however, that this number can vary significantly and will be based on our spreads in the last day of the quarter,” Pandit said.
In addition, tightening credit spreads will likely result in a hedging loss “of roughly $300 million,” Pandit said.
And as Japan lowers its corporate tax rates, Citi will be booking a valuation adjustment of about $300 million against its deferred tax assets there, Pandit said.
Pandit said the capital-markets business so far in the fourth quarter performed in line with the results of the third quarter. Pandit also reiterated that the bank expects to return capital to shareholders next year.
Welshman says:
I cancelled two of my CitiCards and one of my sons and went LOCAL.
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7th December 2011 at 10:07 am
Wyoming Mike says:
Down to the mortgage with BOA because my bank sold it. Althought at 3.375% they’re not getting rich off of me. That’ll be gone soon.
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7th December 2011 at 11:07 am
KaD says:
Add Bank of America, Wells Fargo, Chase to the ‘needs to be liquidated’ list.
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7th December 2011 at 11:14 am
AWD says:
“I canceled two of my CitiCards and one of my sons”
How do you cancel your son?
Who cares how much they lose or how many people they have to lay off. The Fed and criminal politicians will keep handing them as much money as they need. Banksters and finance are now the number one contributor to politicians. They buy their bail-outs and hand-outs from criminal politicians.
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7th December 2011 at 11:49 am
Kill Bill says:
Sounds like another bailout is in the works.
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7th December 2011 at 8:40 pm
Novista says:
Before you can liquidate the banks, you have to liquidate Holder.
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7th December 2011 at 12:33 am
Opinionated Blovaitor says:
By bailing out Citibank in the 80′s Reagan set the precidence of bailouts that continue to destroy the United States from within like gangrene. May be burn in hell for what he did.
Since then the market has tried to cut Citigroup down to size 3 MORE times, each time bailouts were given out to keep the zombie stumbling forward.
Citigroup and the rest of the TBTF banks both in the United States and Europe are simply to broken to survive. The market tried again in 2008 to cut them down to size, it WILL continue to do so until it succeeds.
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7th December 2011 at 6:27 am