This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7513946.stm
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Citigroup posts another big loss | Citigroup posts another big loss |
| (about 1 hour later) | |
| Citigroup has reported another big loss, although it lost less money than had been expected. | Citigroup has reported another big loss, although it lost less money than had been expected. |
| The biggest US bank by assets lost $2.5bn (£1.3bn) in the three months to the end of June, weighed down by another $11.7bn of write-downs. | The biggest US bank by assets lost $2.5bn (£1.3bn) in the three months to the end of June, weighed down by another $11.7bn of write-downs. |
| Citigroup said it had cut 11,000 jobs in the first six months of the year and planned to continue at the same rate. | Citigroup said it had cut 11,000 jobs in the first six months of the year and planned to continue at the same rate. |
| The company's shares rose 9% in early trading following the smaller-than-expected losses. | |
| It is Citigroup's third consecutive quarter of losses, following shortfalls of $5.11bn and $9.83bn. | It is Citigroup's third consecutive quarter of losses, following shortfalls of $5.11bn and $9.83bn. |
| Credit losses | Credit losses |
| The losses spring from problems in the credit markets because of uncertainty about the value of mortgage-backed debt issued by US banks. | The losses spring from problems in the credit markets because of uncertainty about the value of mortgage-backed debt issued by US banks. |
| It has left banks worldwide reluctant to lend money to each other, because they are uncertain about whether the other banks are creditworthy and whether they will need the money themselves. | It has left banks worldwide reluctant to lend money to each other, because they are uncertain about whether the other banks are creditworthy and whether they will need the money themselves. |
| An element of bad news in the three-month results is that Citigroup's credit costs have jumped to $7.2bn, as more of its own customers are defaulting on their loans. | An element of bad news in the three-month results is that Citigroup's credit costs have jumped to $7.2bn, as more of its own customers are defaulting on their loans. |
| That means that while the losses from mortgage-backed debt may be slowing, the losses from Citigroup's own mortgages, car loans and credit cards are growing. | That means that while the losses from mortgage-backed debt may be slowing, the losses from Citigroup's own mortgages, car loans and credit cards are growing. |