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Citigroup Cutting Number Of Outside Mortgage Brokers: Report

 
Wallace Witkowski
MarketWatch Pulse
     

    SAN FRANCISCO -- Citigroup Inc. is taking steps to exit the wholesale mortgage business, beginning with a reduction of outside mortgage brokers it deals with to 1,000 from 9,500, The Wall Street Journal reported late Tuesday on its Web site, citing an internal company memo. Citi will also lay off about 500 sales and operations employees from its CitiMortgage division, the Journal reported.

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    Same-Store Sales

    Most folks judge the health of a business by the revenue that comes in through sales. But not all revenue is equal. Companies can grow their sales by buying other companies, which means you don't get a clear view of how the real sales trends are moving.

    So, many analysts, particularly those who look at retail, try to gauge what¿s known as "organic" growth, by looking at same-store sales. These are sales only at outlets open more than a year, so the metric can exclude any sales jump that comes from opening new locations. Retailers release same-store sales (which are frequently called "comps" since they're a true comparison from the previous period) every month.

    Retail, incidentally, isn't the only industry to look at same-store sales. Hospital companies, also use the metric, to gauge how existing hospitals are performing compared to ones they just built or acquired.