Citigroup to admit it has
more of Big Shitpile.
Dec. 27 (Bloomberg) -- Citigroup Inc., the biggest U.S. bank, may cut its dividend by 40 percent to preserve capital and write down more fixed-income securities than it has told investors to expect, according to Goldman Sachs Group Inc.
The New York-based bank may write off $18.7 billion in collateralized debt obligations such as subprime mortgages, up from its Nov. 4 estimate of as much as $11 billion, Goldman's William F. Tanona wrote in a note dated Dec. 26. Citigroup, which paid out 54 cents each quarter this year, will have to raise $6.2 billion in extra capital to reach its target, they wrote.
