Existing users please login

 

Home / Markets

Citi Posts $2.5B 2Q Loss Amid Soaring Loan Defaults

 
Associated Press
     
    Citigroup Headquarters

    Citigroup (C) says it posted a $2.5 billion loss and laid off more employees in the second quarter as it struggled with surging loan defaults.

    The nation's biggest banking company by assets reported Friday it lost $2.5 billion, or 54 cents per share, in the April-June period. In the same timeframe last year, the bank earned $6.23 billion, or $1.24 per share.

    Thomson Financial says analysts had predicted a loss of 66 cents share.

    Citigroup Inc.'s securities and banking division has written down its assets by $7.2 billion, before taxes. Credit costs have jumped to $7.2 billion as more consumers defaulted on their loans.

    The bank reduced its work force by 6,000 during the quarter. That brings its job cut total to 11,000 for 2008.

     

    Fox Business Video