CITIGROUP CUTS PROFIT FORCAST BY 60%; SUBPRIME… YOU KNOW THE REST BY HEART
October 1st, 2007Via: Bloomberg:
Citigroup Inc., the biggest U.S. bank, said third-quarter profit fell about 60 percent because of “weak” credit markets and losses on leveraged loans and mortgage-backed securities.
The bank will write down $1.4 billion before taxes on leverage finance commitments, Citigroup said today in a statement. The New York-based bank lost $1.3 billion on subprime assets and about $600 million in fixed-income trading. Higher loan-loss reserves contributed to $2.6 billion in credit costs in the consumer-banking business.
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