Goldman Sachs says Citigroup may write down $9 bln
Citigroup may incur Q2 write-downs of $9 billion and raise additional capital, said a Goldman Sachs analyst, who widened his loss estimate for the bank for the period.
Goldman’s William Tanona said he now assumes Merrill Lynch will incur $4.2 billion of write-downs in the Q2. He widened his quarterly loss estimate on the world’s largest brokerage to $2 a share from $0.25. The analyst, who also added Citigroup to the Americas conviction sell list, expects the bank to post a loss of 75 cents a share for the quarter, compared with his prior forecast of a loss of 25 cents. “We see multiple headwinds for Citigroup including additional write-downs, higher consumer provisions as a result of rapidly deteriorating consumer credit trends, and the potential for additional capital raises, dividend cuts, or asset sales,” Tanona said. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.