Citi and the US economy

16Jan08

Credit cards and other consumer-finance businesses are deteriorating fast as America’s economy flirts with recession. Citi reported a $4.1 billion rise in credit costs in its American retail operations for the quarter and indicated that losses will grow. It does not help that a hefty 13% of its loans are to subprime borrowers. Corporate lending also looks wobbly. And Citi is on the hook for billions-worth of loans for leveraged buyouts. Since the markets turned, these have proved hard to shift on to other investors.

The Economist, Jan 15th 2008, “Citi’s kitchen-sink moment?”

Is Citi really in trouble then? What about the recession flirt? More to read and to observe….

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