Citi hits new low
Citi (C) sank 6% to a nine-year low amid rising worries about the banking giant’s financial health. Analyst Guy Moszkowski at Merrill Lynch cut his 2008 earnings estimate to 24 cents a share from $2.74, citing billions of dollars in subprime-related writedowns and other problems, starting with the U.S. consumer. “We remain concerned about loss provision potential, the direction of long-term strategy, and weak markets for the Capital Markets businesses,” Moszkowski writes.
Concerns about Citi are widespread. CNBC reports the bank could be forced to cut more than 30,000 jobs - up from a previously announced plan to cut 24,000 positions - in a bid to bring expenses back in line with revenue. The CEO of Dubai’s sovereign wealth fund believes the $22 billion Citi has raised recently won’t be enough to keep the bank from going back to the markets for more capital soon.
(Per the resident Citi Employee - that sucks)