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)
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