NEW YORK - Citigroup has become the latest big bank to assuage Wall Street’s worries about the financial sector, posting a $2.5 billion second-quarter loss that was smaller [As if this sheds any hope on the situation] than the market expected. Citigroup Inc.’s securities and banking division wrote down the value of its assets by $7.2 billion, before taxes, and an asset revaluation cost its consumer lending business $745 million. Those write-downs totaling about $8 billion are significantly lower than write-downs taken in the first quarter and in last year’s fourth quarter. However, credit costs jumped to $7.2 billion as more consumers defaulted on their loans — implying that while losses in the credit markets are decelerating, losses from actual defaults in Citigroup’s mortgages, home-equity loans, auto loans and credit card lines are mounting. The $7.2 billion in credit costs included $4.4 billion in credit losses and a $2.5 billion charge to bulk up reserves for future loan losses. More
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18 Jul
Citigroup posts $2.5B loss