Friday, October 5, 2012

Citigroup Lost in Fourth Quarter and Full Year

Citigroup reported a fourth quarter net loss, after repayments of TARP bailout funding, of $7.6 billion versus a loss of $17.26 billion a year earlier. Citigroup also reported a $1.6 billion full-year net loss for 2009 versus the 2008 full-year loss of $28.7 billion. Much of the quarterly and full-year losses are blamed on the repayment of TARP funding that helped keep banks afloat during the financial crisis.

Citigroup is still reeling from the impact of the financial crisis. Since fall 2008, the bank has been actively divesting businesses. In 2009, the big bank spun off its Smith Barney brokerage division to Morgan Stanley. Timing of TARP repayments remains an issue as banks have repaid the bailout funding in order to be eligible to give employees big bonuses for 2009.

The full news release with financials is available here.

Comments? Please send them to kmcbride@wealthmanagerweb.com. Kate McBride is editor in chief of Wealth Manager and a member of The Committee for the Fiduciary Standard.

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