Thursday, November 1, 2007

But, but, but it was all a storm in a teacup!

Citi executives sacked over credit turmoil

Two weeks ago, Citi said that it had lost $1.6bn on mortgage and loan-backed securities as a result of the credit market turmoil during the third quarter. But Merrill Lynch’s disclosure last week that it had suffered writedowns of $7.9bn on its similar holdings has raised fears that Citi’s losses have mounted significantly.Merrill ousted Stan O’Neal as chairman and chief executive after revealing the losses that it suffered were almost double the figure it had estimated less than three weeks earlier. Citi was second only to Merrill last year as an underwriter of CDOs, structured investments created from bundles of mortgages. As demand for the securities dried up over the summer, the banks have been left with large inventories, which have fallen sharply in value.

Posted by lvmreader @ 01:45 PM (435 views)
Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>