How do the losses for Citi due to subprime lending compare to some of the other industry giants; Goldman Sachs

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gangai asked:


How do the losses for Citi due to subprime lending compare to some of the other industry giants; Goldman Sachs, Morgan Stanley, and even Bear Sterns? Do Citi more consumer based offerings diversify them enough to compete with these banks?

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    • This entry was posted on Thursday, June 17th, 2010 at 8:13 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    No Responses to “How do the losses for Citi due to subprime lending compare to some of the other industry giants; Goldman Sachs”

    1. Sageandscholar Says:
      June 19th, 2010 at 5:11 pm

      Citi has the most losses - but given that Citi is also the world’s largest bank this must be taken in proportion.
      Citi, for such a massive bank was fairly exposed in the form of housing in general and sub prime loans in particular.
      Hence thier losses are significantly more than thier most direct competitors (eg Bank of America, Morgan Stanley, HSBC) but proportionately the next few in net losses, UBS, Merril Lynch are even more exposed.
      Citi does have diversity across a great many market sectors and indeed a great many markets. For instance Citi’s Asia Pacific Consumer Banking group made a profit of over 6 billion last year. Despite writing down nearly 30 billion last year due to the sub prime losses the company still recorded a net profit of 3.6 billion.
      Yes Citi took a hit from the sub Prime meltdown and it was a big hit. It was proportionately more than some banks but significantly less than others.
      Despite the hit Citi remains profitable and will be fine.