Citigroup Posts $2.5 Billion Loss As Loan Defaults Mount

By: Associated Press
By: Associated Press


NEW YORK (AP) - Citigroup says it posted a 2.5 billion dollar
loss and laid off more employees in the second quarter as it
struggled with surging loan defaults.
The nation's biggest banking company by assets reported Friday
it lost 2.5 billion dollars, or 54 cents per share, in the
April-June period. In the same timeframe last year, the bank earned
$6.23 billion, or $1.24 per share.
Thomson Financial says analysts had predicted a loss of 66 cents
share.
Citigroup's securities and banking division has written down its
assets by 7.2 billion dollars, before taxes. Credit costs have
jumped to 7.2 billion dollars as more consumers defaulted on their
loans.
The bank reduced its work force by 6,000 during the quarter.
That brings its job cut total to 11,000 for 2008.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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