Citigroup To Writedown Further Losses For Q2

by Jacob Cherian    June 22, 2008

According to recent reports, Citigroup Inc, one of the banks hit hardest by the subprime debacle, is likely to report losses for Q2.

The bank has warned of more writedowns linked to bad debt.

A forecast by UBS has said that Citigroup will be foreced to face writedowns up to $8.7 billion. That forecast was made by UBS analyst Glenn Schorr in a note to clients.

The writedowns stem from leveraged loans and bond insurers, said the New York-based bank's CFO, Gary L. Crittenden.

Reports say that Citigroup has lost more money than any other bank stemming from the failed mortgage market.

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