Citigroup’s New 20 Billion Dollar ATM Fee

by Charles Feldman on January 15, 2008

  

You can almost feel sorry for Citigroup.

I said almost.

It screwed up so badly–along with lots of other banks and brokerage houses–on the subprime mortgage thing that the Wall Street Journal says Citigroup will likely announce a writedown of “as much as $20 billion.”

Now, of course, don’t think for a minute that the big bad bank is going to just absorb such a writedown without also inflicting intense pain on its own employees– you know, the ones who made Citigroup the largest U.S. bank to begin with?

The WSJ says Citigroup will also announce more than 20 thousand job cuts just in time for the posting of its fourth quarter results.

I bet it will cancel their Citibank credit cards, too!

Wait,the bad news isn’t over just yet.

Citigroup will also reportedly announce a “significant dividend cut.”

Wait, there is still more bad news…that is if you happen to object to a couple of Arab countries buying up a big piece of Citigroup.

The bank will also apparently announce some $10 billion of new capital coming mostly from the Kuwait Investment Authority and Saudi Prince Alwaleed bin Talal. The Government Investment Corp of Singapore will also buy a chunk of shares.

This past weekend, the state owned China Development Bank nixed plans to buy a $2 billion slice of Citi…maybe the Chinese get more frequent flyer miles buying up another bank?

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