Citigroup Sees Earnings Falling 60% from Last Year

October 1 2007 BusinessWeek.com Citigroup Inc., the nation's largest financial institution, warned Monday its third-quarter earnings are likely to decline 60 percent, as it takes more than $3 billion in writedowns for securities backed by underperforming mortgages and loans tied to corporate buyouts. The announcement from Citigroup came as the Swiss bank UBS AG said it will post a loss of up to $690 million in the third quarter partly due to losses linked to U.S. subprime mortgages. Subprime mortgages -- loans given to customers with poor credit history -- have gone delinquent or defaulted at rising rates in recent months, causing banks to lower the value of the loans as investors shy away from buying them.

More

Best Mortgage Companies
Email this article to a friend | Send us a comment