Another Rough Day For Citigroup (C): It Buys Out Its SIVs

November 19, 2008 by Douglas A. McIntyre

Data_2Citigroup (C) is off almost 4% at the open after news that it has committed to acquire the remaining assets of the Citi-advised SIVs at their current fair value.

That value is estimated to be approximately $17.4 billion, net of cash, as compared with $21.5 billion at September 30, 2008. The decline primarily reflects asset sales and maturities of $3.0 billion and a decline in market value of $1.1 billion since the end of the third quarter 2008.

The SIVs have been selling assets as part of an asset-reduction plan to fund maturing debt obligations, and have reduced long-term assets from $87 billion at the end of July 2007 to $17 billion currently.

With its shares down to $8.08, Wall St. seems unhappy.

Douglas A. McIntyre