Any pictures of “The Red Nuisance,” from this day on, are nothing more than Hollywood photoshops.
|C Citi’s hits: 15 times $100 mln – WSJ (24.74Â )|
|The Wall Street Journal reports Citigroup (C) disclosed that traders in its investment bank piled up daily losses of more than $100 mln on 15 separate occasions last year. Those 15 days, which Citigroup disclosed in its annual report filed late Friday but declined yesterday to describe in detail, added to worries the bank’s problems are deeper than those that led to about $20 bln in mortgage-related write-downs last year, the ouster of its chief executive and a sinking stock price. In a statement last night, a Citigroup spokeswoman said the trading disclosure “highlights the volatility that existed in the markets in 2007. There were many days when we saw significant gains, including more than 55 where revenue gains exceeded $100 mln.” In its report, Citigroup gave significantly more detail about its exposure to and involvement with off-balance-sheet vehicles. The figures suggested investors still need to worry about what they can’t quite see on the bank’s books. Citigroup said off-balance-sheet entities connected to it had total assets of $356 bln, compared to $388 bln at the end of 2006. The 2007 figure, however, didn’t include $58 bln in SIVs, assets Citigroup now carries on its own books, which were included in the prior year’s tally. Of those assets, Citigroup has a maximum possible exposure to loss of about $152 bln, compared to $148 bln the previous year. About $14 bln of this potential loss comes from the bank’s continuing exposure to CDOs which analysts fear could be in for further downgrades.|