Citigroup in for more woe, analyst says

The bank may lose $1.6 billion in its first quarter, according to Meredith Whitney of Oppenheimer.

Citigroup Inc. may face more financial trouble on the horizon, according to Meredith Whitney of Oppenheimer & Co., according to Bloomberg news.
The bank may lose $1.6 billion in the first quarter, a loss of 28 cents per share, according to Ms. Whitney.
This follows a fourth-quarter loss of $9.8 billion, mostly due to write-downs linked to the subprime debacle.
She predicts more write-downs are predicted, mainly in collateralized debt obligations, leveraged loans and credit card debt — all areas that are seen as especially vulnerable to the recent debt meltdown.
The investment bank recently injected a $500 million line of credit into its Falcon multistrategy fixed-income hedge funds in order to move the funds’ $10 billion assets and liabilities onto its balance sheet, according to its annual report to the Securities and Exchange Commission.
These developments come in the wake of Citigroup’s suspension of withdrawals from its fixed income hedge fund CSO partners last week, following the resignation of the fund’s manager, John Pickett.