Citigroup faces $15b writeoff: GS
Thursday, 22 November 2007
NEW YORK, Nov 21 (Reuters): Goldman Sachs & Co Monday downgraded Citigroup Inc to 'sell' from 'neutral,' and said the largest US bank may have to write off $15 billion over the next two quarters as mortgage losses reduce earnings.
The report from analyst William Tanona came shortly after Citigroup's own chief U.S. equity strategist, Tobias Levkovich, upgraded the nation's banking sector to 'overweight' from 'market weight,' calling selling pressure 'overdone.'
Citigroup shares fell $1.13, or 3.3 per cent, to $32.87 in morning trading. They began the year at $55.70.
Goldman's forecast compares with the $8 billion to $11 billion that Citigroup on November 4 said it may write off this quarter for exposure to subprime mortgages and collateralised debt obligations.
The report from analyst William Tanona came shortly after Citigroup's own chief U.S. equity strategist, Tobias Levkovich, upgraded the nation's banking sector to 'overweight' from 'market weight,' calling selling pressure 'overdone.'
Citigroup shares fell $1.13, or 3.3 per cent, to $32.87 in morning trading. They began the year at $55.70.
Goldman's forecast compares with the $8 billion to $11 billion that Citigroup on November 4 said it may write off this quarter for exposure to subprime mortgages and collateralised debt obligations.