Chronicles Of Depression 2.0: #039

Citigroup reports $5.1 billion loss on hefty write-downs

NEW YORK (AP) — Citigroup Inc. lost $5.1 billion during the first quarter as poor bets on mortgages and leveraged loans lopped billions of dollars from its investment portfolio.

Write-downs related to mortgages and turmoil in the credit markets reached about $12 billion, and costs stemming from consumers’ credit problems surpassed $3 billion, the bank said Friday.

The most recent quarterly shortfall at the nation’s biggest bank by assets was not as massive as the nearly $10 billion loss it suffered in the fourth quarter of last year, though.

And here’s the kicker:

“We are taking the necessary steps to make Citi more efficient while fostering a culture of accountability and teamwork,” Pandit said in a statement. “As we move into the second quarter and beyond, we will continue to divest non-strategic assets and allocate capital to the products and regions that will drive increased revenues, enhance the value of our franchise, and ultimately, maximize shareholder value.”

The Financial Times reported Friday that Pandit vowed to cut costs by 20 percent.

There’s the infamous maximizing shareholder value.

Twenty per cent cut in costs = layoffs.

Maximizing shareholder value by decreasing employee retention.

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