Citigroup may have to write down $24 billion, cut 20,000 jobs: report

Our Corporate Bureau
14 January 2008

Mumbai: Citigroup Inc, the largest US bank by assets, could write down as much as $24 billion and may lay off 20,000 workers to cut sub prime credit-related losses and boost capital, CNBC said in a report on its website.

Citi is looking for more funds to help it through losses from the sub prime crisis after securing $7.5 billion from the Abu Dhabi Investment Authority in November, reports quoting sources familiar with the developments said.

While reports said Citigroup might raise as much as $15 billion from selling stakes to foreign and domestic investors, the reports failed to explain the actual amount of write-downs or cash injections involved.

Reports also said the bank is selling some shares to Saudi Prince Alwaleed bin Talal, already Citi's single largest shareholder, as also to the China Development Bank.

China Development Bank may invest about $2 billion, the report said while another report said the Kuwait Investment Authority may invest as much as $3 billion in Citigroup.

Last week, The New York Times reported that Merrill's write-down could be as much as $15 billion. Any fresh capital injection in Citi would represent a second round of foreign help.