Citigroup: As a global financial services company, it provides services to about 200 million customers in more than 100 countries, including individuals, institutions, enterprises and government departments, providing a wide range of financial products and services, from consumer banking services and credit, corporate and investment banking services to brokerage, insurance and asset management. Now its companies mainly include Citibank, Traveler Life Insurance and Pension Insurance. 1902 in may, Citibank was the first American bank to open in China, and now it is the most global foreign bank in China.
It is reported that Wall Street is currently rumored that Citigroup may file for bankruptcy protection, because the company has not yet received $7.5 billion investment from investors in the Middle East, especially the Abu Dhabi Investment Authority.
It is difficult to judge whether this rumor is true or not, but it seems to be false news released by some trading institutions to manipulate Citi's short-term share price. Citigroup is actively trying to balance its balance sheet. It has been more than a month since it announced that it has obtained the investment from Abu Dhabi Fund, and the $2.9 billion additional shares announced in the open market last week have been snapped up.
Citigroup's performance report last week showed that the provision related to subprime loans reached $65,438+$86,543.8 million, resulting in a loss of $9.83 billion. These two figures make Citigroup one of the most seriously injured banks in the subprime mortgage crisis. After the release of the performance report, Standard & Poor's downgraded Citi's credit rating to AA-.
An analyst at Morgan Stanley, who asked not to be named, said, "There are many bombs lurking in Citi's financial report, and the negative equity mortgage alone may be quite serious."
In terms of domestic consumer credit, Citigroup has incurred losses of $465.438 billion, mainly including $690 million in high-grade credit net loss and $3,365.438 billion in loan net loss provision. The increase in credit losses mainly includes the increase in the default rate of first-class housing mortgage loans and second-class housing mortgage loans, as well as unprotected personal loans, credit cards and auto loans.
At present, the credit scale of Citigroup's primary mortgage and secondary mortgage is * * * 214.4 billion USD. The LTV index in the performance report (referring to the ratio of mortgage loan to building value) shows that a large part of Citi's mortgage loan has been exposed to risks, and the decline in real estate prices will have a great impact on banks. The scale of primary and secondary mortgage loans becoming negative equity mortgage loans may be as high as $75.4 billion.
If the economy falls into recession and consumers are unable to repay their credit cards and car loans, Citigroup and other banks may have to bear more losses. Because of this, Citigroup's $7.4 billion provision for potential loan losses in the fourth quarter may be far from enough.
It is also known that Citigroup is now laying off 400 investment bank employees in the UK.
The report pointed out that this is part of Citigroup's global layoffs of 4,200 people. At present, Citi has about 1. 1 10,000 employees in Britain.
In addition to the British part, the rest of the layoffs may be in the consumer finance business in the United States, India and other parts of Asia. Citigroup spokesman Dan Noonan did not return calls from the media. He Xun
Bank of America wants to sell CCB shares for emergency.
Affected by the subprime mortgage crisis, foreign banks holding shares of Chinese banks began to consider selling some shares of Chinese banks to save their balance sheets that were hit hard by the subprime mortgage crisis. It is reported that Bank of America, the second largest bank in the United States, has indicated that it is considering cashing in part of its equity in China Construction Bank.
Previously, Temasek Holdings, Singapore's state-owned investment institution, reduced its holdings of 280 million CCB H shares and 65.438+008.2 million BOC H shares last year, cashing in 792 million US dollars.
Arranging the list of foreign banks holding shares in Chinese banks is like a "who is who has suffered a crisis". In addition to Bank of America, the list also includes Citigroup, HSBC Holdings, Royal Bank of Scotland and UBS Group AG.
It is also reported that HSBC Holdings and Citigroup intend to increase their shareholding in Chinese banks. The head of securities trading in China of UBS Group AG Group AG said that foreign-funded institutions are faced with a dilemma, that is, selling their shares to cash in, or continuing to increase investment in China and emerging markets to make up for losses elsewhere.