Citigroup may face $24 billion write-down

The firm could also slash as many as 20,000 jobs as part of a plan to cut costs and raise capital, according to CNBC.

Citigroup Inc. could post a write-down as large as $24 billion as a result of bad bets on subprime mortgages and credit-related losses, according to CNBC.
Additionally, the New York-based financial services giant could slash as many as 20,000 jobs as part of a plan to cut costs and raise capital, according to the report.
The plans will be unveiled tomorrow, when the bank reports forth-quarter earnings.
At the same time, Citigroup could also announce that it is cutting its dividend payment.
The company also intends to raise as much as $15 billion from various foreign and domestic entities including Saudi Arabian Prince Alwaleed bin Talal, the bank’s largest shareholder.
Back in November, Citigroup accepted $7.5 billion in new capital from The Abu Dhabi Investment Authority (InvestmentNews, Nov. 27) shortly after its former chief executive, Charles Prince, was forced to resign after the company announced that it had to write-down $8 billion to $11 billion on bad mortgages (InvestmentNews, Nov. 5) .