Citibank announced a third-quarter pre-tax loss of approximately $1.3 billion on the value of warehoused sub-prime mortgage-backed securities, collateralized debt obligation positions and warehoused leveraged loan obligations yesterday. The bank also announced a pre-tax loss of approximately $600 million in fixed income credit trading. “Despite unusually poor results in certain businesses this quarter, Citi continues to execute its growth strategy and generate momentum across many of its franchises,” said Charles Prince, chairman and ceo, in a news statement. Citibank also said it believes overall net income will be down about 60% from the year ago period when complete third quarter results are announced on October 15.
Citibank Announces Heavy Write-Downs