Saturday, 20 December 2014
Last updated 18 hours ago
Apr 18 2008 | 10:30am ET
Citigroup swung to a huge loss in the first quarter, hurt in part by poor performance and write-downs at its alternative investments business.
The losses at Citi Alternative Investments were a relative drop in the $5.1 billion bucket of red ink: the group recorded “negative revenue” of $358 million “on sharply lower proprietary revenues” and $212 million in mark-to-market losses on SIV assets.
Particularly embarrassing for new CEO Vikram Pandit—whose firm has now taken some $39 billion in write offs—Old Lane Partners, the hedge fund he founded that was acquired by Citi last year, was forced to write off $202 million in intangible assets related to its multi-strategy fund.
“Our financial results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions,” Pandit said.
All told, Citi took $16.9 billion in write-downs and loan-related losses in the first quarter, as revenue plummeted 48% to $13.2 billion. The fund’s $5.1 billion loss on the quarter is a mirror image from its first-quarter 2007 performance, when it posted a $5 billion profit.
Citi also said it would cut a further 9,000 jobs, about 3% of its total workforce, on top of 4,200 layoffs announced in January.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.