Citigroup disclosed that it's investment managers took looses of more than $100 million on 15 different trading days in 2007.
The disclosure contained in the bank's annual report prompted speculation that Citigroup's problems including the credit crisis issues to be more significant than previously thought.
In 2007, Citigroup wrote down $20 billion in mortgage related investments and replaced the bank's chief executive officer.
At the end of last year, Citigroup consolidated more than $20 billion in such CDO assets, which were previously kept off its books. In extreme circumstances, Citigroup potentially could be required to bring an additional $38 billion in CDO assets onto its books at a time when it is trying to slim down its balance sheet.
Citigroup's expansion of the information it provided about off-balance-sheet entities followed a December request from the Securities and Exchange Commission that firms with big exposures to these entities give investors more information in their annual reports. Citigroup also disclosed that it is in discussions with the SEC's division of corporate finance regarding these off-balance-sheet vehicles, as well as "hedging activities."
No comments:
Post a Comment