Citigroup has lost $20.3 billion in the last year, and has taken tens of billions in writedowns on mortgages and assorted other toxic debt. It’s not expected to be profitable in the fourth quarter or in 2009. Shares closed at $4.71 today.
Treasury Secretary Henry Paulson spoke today and cautioned against too-strict regulations in an attempt to avert another crisis down the line. Those statements followed pledges by world leaders at the G20 meeting, which kicked off an overhaul of the world’s financial system, reports Jeannine Aversa for the Associated Press.
Whatever plans are put into place, one thing many will agree upon is that there needs to be way more transparency. Secrecy about things such as where banks are using their bailout funds all the way on down to where investors’ money is invested is not going to be tolerated anymore.
Financial Select Sector SPDR (XLF) is down 63.7% year-to-date. Citigroup is 6.9% of the holdings.