Credit Downgrades: Largest US Bank to Lose $2 Billion in 4th Quarter Income

Citigroup has announced that the current tide of credit-rating downgrades, stemming from the collapse of the sub-prime mortgage market, will cost them $2 billion dollars in net income in the 4th quarter of 2007. The 3rd quarter of '07 wasn't much better; Citigroup recorded mortgage-related write-downs of about $2.2 billion, and posted losses on sub-prime securities. Merril-Lynch has written down their 4th quarter income projections by nearly $8 billion. Citigroup is getting a new CEO as a result, as is Merrill Lynch.