Posted
11/05/2007 05:06:00 PM
by Douglas
For an increase in your credit line,
press one.Turns out some 43% of the firm's equity is tied up in subprime-related assets, including $43 billion in headache-inducing credit derivative products. The additional write-downs would come on top of more than $3.8 billion in losses in the third quarter.
Massive exposure on the consumer credit front, where defaults are rising, also remains. Citi specializes in making loans to borrowers with weaker credit. It set aside $2.9 billion in the third quarter alone for problem consumer loans. So much for diversification.
Pretty sad when the overlords of our credit card debt are spending money on bad purchases, just like we are.