Tuesday, January 15, 2008

Citigroup loses $9.83 billion in fourth quarter

Citigroup announced a steep cut in its stock dividend and another big investment by foreign investors on Tuesday after taking another big write-down related to subprime securities and posting a $9.83 billion loss for the fourth quarter.Beginning what is expected to be a grim week for financial company earnings, Citigroup said it was writing down $18.1 billion because of soured mortgage-related investments.

As part of a plan to shore up Citigroup, the chief executive, Vikram S. Pandit, said the company would eliminate 4,200 jobs and cut its dividend by 41 percent, to 32 cents from 54 cents a share. Citigroup also turned to wealthy foreign governments again and announced the sale of a $12.5 billion stake to the Kuwait Investment Authority and several others, including Prince Walid bin Talal of Saudi Arabia. In November, the company sold a $7.5 billion stake to a Middle Eastern fund, the Abu Dhabi Investment Authority.


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