Wednesday, January 16, 2008

Market Has Poor Reaction To Citi’s Earnings

If everyone and their mother knew that Citi’s earnings were going to be bad, and that they would take a huge writedown, then why is it hurting the market so much?Citi (C) reported a larger EPS loss than expected, and took an $18.1 billion write-down on subprime and fixed income. They also had a $4.1 billion increase in credit costs due to estimated losses on consumer loans. Citi also cut its dividend by 40%, to save capital, and will sell $2 billion in securities to raise money.The comments on their consumer loans is hurting retail stocks, as it incre[...]

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[Source: The Money Blogs]

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