ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Monday, January 14, 2008

Holy Cr@p Bat Man - What's Going on at Citicorp?

Well, if you needed something to worry about this Monday morning, you might give Citicorp some thought.

Citigroup plans to announce a writedown of as much as $24 billion and layoffs that could total as much as 24,000 due to subprime and credit-related losses, CNBC has learned.

Oliver Quillia for
Citigroup plans to announce a $24 billion writedown and layoffs that could total as much as 24,000.

The plans will be unveiled Tuesday by Citigroup's new CEO, Vikram S. Pandit, after the banking giant reports fourth-quarter earnings. At the same time, Citigroup could also announce that it is cutting its dividend payment.

Citigroup is likely to cut between 17,000 and 24,000 positions over the course of the year through a combination of layoffs. attrition and selling off businesses as part of Pandit's cost-cutting plan, sources said. Previously, it was estimated that the layoffs could reach 20,000.

Pandi is looking to avoid taking a charge to earnings that's usually associated with large-scale layoffs, which is one reason he's considering a number of staff-cutting initiatives besides outright firings. It's unclear if he'll announce a specific number of job cuts on Tuesday.

A Citigroup spokesman had no immediate comment.

More at CNBC.

Is anyone asking the question, "What will happen if one of these behemoth banks fails?"

Then we have Bank of America buying Countrywide which looks to me like Cunard buying the Titanic after it hit the iceberg.

This is unnerving.

Maybe there was a reason we had banking regulations that came into existence during the Depression that prevented this sort of centralization of banking power.

What would happen indeed.

Your Co-Conspirator,
ARC: MontereyJohn