Citigroup (C) Has $500 Million Credit Loss
Chuck Prince is likely to be on the hot seat again, but, his troubles may be worse than in the past.
According to The FT the bank “lost more than $500m in credit business in recent weeks, making it one of the biggest casualties of the crisis.” The paper added “the losses were made largely in the structured credit business run by Michael Raynes.”
Citi had begun to recover from two years of performance that lagged behind its rivals. Prince has not be viewed as a worthy successor to former CEO Sandy Weill.
After badly under performing the shares of JP Morgan (JPM) and Bank of American in the second half of 2006, Citi’s stock still runs well behind JPM but is comparable to BAC.
That may change now. There were rumors that Prince was in trouble. Those are likely to surface again.
Douglas A. McIntyre