Citigroup's CEO, Charles O. (Chuck) Prince III, is reported to be planning to step down as Citigroup’s chairman and chief executive. (Source: Wall Street Journal).
Citigroup, the world's largest banking organization, has reported its third quarter earnings plunge by 57% due to writing down of sub-prime mortgage. Citigroup has seen a hit of $2.2 billion due to mortgage-backed securities (MBS) and credit trading. Further write-downs are not ruled out. Citigroup’s shares have crash down by about a quarter of its value since it reported decline in earnings last month. Citigroup is no longer world’s biggest bank by market capitalization. China’s ICBC has overtaken Citigroup in the rankings.
Earlier this week CEO and chairman of Merrill Lynch, Stan O’Neal, had resigned following his company’s $7.9 billion write-down due to sub-prime crisis. Bear Stearns CEO James Cayne is also facing scrutiny criticism of his leadership.
Most US banks have taken colossal hits from risky mortgage securities in the third-quarter of 2007. Merrill Lynch topping the list with $7.9 billion write-downs; UBS is second with write-downs of $3.4 billion. Fourth-quarter results may also get battered by recession in the U.S. housing and mortgage markets. According to some analysts Citigroup may have to suffer another $4 billion of write-downs in the fourth quarter.
Citigroup, the world's largest banking organization, has reported its third quarter earnings plunge by 57% due to writing down of sub-prime mortgage. Citigroup has seen a hit of $2.2 billion due to mortgage-backed securities (MBS) and credit trading. Further write-downs are not ruled out. Citigroup’s shares have crash down by about a quarter of its value since it reported decline in earnings last month. Citigroup is no longer world’s biggest bank by market capitalization. China’s ICBC has overtaken Citigroup in the rankings.
Earlier this week CEO and chairman of Merrill Lynch, Stan O’Neal, had resigned following his company’s $7.9 billion write-down due to sub-prime crisis. Bear Stearns CEO James Cayne is also facing scrutiny criticism of his leadership.
Most US banks have taken colossal hits from risky mortgage securities in the third-quarter of 2007. Merrill Lynch topping the list with $7.9 billion write-downs; UBS is second with write-downs of $3.4 billion. Fourth-quarter results may also get battered by recession in the U.S. housing and mortgage markets. According to some analysts Citigroup may have to suffer another $4 billion of write-downs in the fourth quarter.
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