Tuesday, January 15, 2008

Sub-Prime: Not Just a Zit Anymore

These guys are not the first, nor will they be the last:

Citigroup Inc. posted a huge fourth-quarter net loss on $17.4 billion in subprime-related writedowns, announced plans to sell another $14.5 billion in preferred stock and will cut its dividend 41%. The company also said it would sell noncore assets

(Source: ABA Newsletter)

It is rumored that the Chinese refused to purchase Citigroup stock--thus, the $14Bn preferred offering will go forward.

No comments: