Pitt Kelton doubted that Citigroup will be able to continue to find buyers for its business units, which is necessary to reinforce the capital base against further credit losses and write-downs. The Stock prices target was cut to $16 from $20.
On Wednesday, Citi acquired the remaining $17.4 billion in assets held by structured investment vehicle (SIV) it already supports as the bank moves to unwind the troubled funds. The Assets were acquired at the current fair value on net of cash. The Value fell to $17.4 billion from $21.5 billion as of September 30, fell 4.1 billion or 19%. The Fell value consists of $3 billion loss from asset sales and maturities and the remaining $1.1 billion due to market value declines.
The Bank has recorded $2.8 billion loss in the third quarter and taken more than $40 billion write-downs. Citi also announced that it was cutting 53,000 headcounts in an effort to reduce expenses.
Related Posts :
Sources :
- CNN Money: Citi in $17.4B move on troubled assets, November 19, 2008: 11:22 AM ET
Reuters: Citi to write down $3 billion in fourth quarter: Fox-Pitt, November 19, 2008 8:53am EST
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