Chillin' out till it needs to be funded
Citigroup Inc unveiled a plan to break into two businesses as a way to shed troubled assets, and reported an $8.29 billion fourth-quarter loss, its fifth straight quarterly loss.
The company also said on Friday that it anticipated more departures from its board, which is losing Robert Rubin as a director later this year. Nevertheless, Citigroup shares rose 14.9 percent to $4.40 in premarket trading, in part because of hope about the banks plans to restructure and separate its good assets from its bad ones.
“Its one of the first steps toward some positive news and the end of this nightmare,” said Michael Holland, founder of Holland & Co in New York, which oversees more than $4 billion of assets.
Citigroup posted $28.3 billion of writedowns and credit losses, bringing its total credit losses over 15 months to more than $92 billion.
The banks fourth-quarter loss equaled $8.29 billion, or $1.72 per share, compared with a year-earlier loss of $9.8 billion, or $1.99 a share.
The results included after-tax gains of $3.9 billion from the sale of the companys German retail banking operations.