Goldman Says Citigroup Faces $15 Billion CDO Write-downs

[mahatmakanejeeves]

Source: The Wall Street Journal.

Goldman Says Citigroup Faces
$15 Billion CDO Write-downs

By KIMBERLY A. VLACH
November 19, 2007 8:27 a.m.

LONDON -- Citigroup Inc. stock was downgraded to "sell" from a "neutral" rating by Goldman Sachs Group Inc. Monday, with the brokerage estimating the group will incur $15 billion in write-downs on collateralized debt obligations over the next two quarters.

Citigroup will feel "the pain" of a worsening consumer-credit environment in its retail banking and cards divisions, Goldman Sachs said in a research note.

"Given the firm's exposure to CDOs, subprime mortgages, SIVs and leverage loans, it will be challenging for the firm to achieve its desired targets," said Goldman Sachs.

The group is facing mounting pressure across many businesses due to deteriorating consumer and housing metrics.

Read more: http://online.wsj.com/article/SB119547599666497812.html?mod=googlenews_wsj

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I should have sold mine six months ago.

[flashl]

1. Citigroup should ask Goldman to show their hidden exposure. n/t

[underpants]

2. Damn, them some fancy words for "screwed up royally"

bad business is bad for business.

[scarface2004]

3. whatever?!?!

the ceo will still get comped millions and millions for being a total asshole!!!

[Fenris]

4. Hello unfolding banking crisis.

CitiGroup being downgraded to sell is bad bad bad.

[mahatmakanejeeves]

7. Unless ...

you're sitting on the sidelines with cash. It will hit a bottom. I don't know when.

Disclaimer: I own some.

[Faygo Kid]

5. Only one thing to do: Mega-bonuses for the top guys at Citigroup.

Does anyone have the least doubt that the top guys will reward themselves generously for this debacle? Any doubt at all?

[Jazzgirl]

6. I just hope my loan is safe with Citi.

My original loan was sold to them a couple of years ago. I am :scared: (shuddering) to think what they might try to do. I have a fixed rate loan but still.....I am watching them very closely.