Oct 15 - Citigroup takes a $4.7 billion writedown of its stake in a joint venture it created during the financial crisis, but excluding the charge the global bank posted better-than-expected third-quarter earnings. Conway G. Gittens reports.
Today's daily digit is 4.7 billion dollars, a number that hammered Citigroup's third-quarter results. This morning Citigroup said its quarterly profit plunged on a $4.7 billion writedown of its stake in a brokerage operated by Morgan Stanley, but was created as a joint venture in 2009, back during the financial crisis, when Citigroup was looking to shrink its business. In September, Citi agreed to sell its entire interest in the unit, but not before taking that near $5 billion charge to reduce the unit's value on its books. Excluding the writedown, Citigroup actually announced better-than-expected third-quarter results thanks to stronger revenue from fixed income and equity markets, and lower expenses. The group's consumer banking unit also increased profits thanks to revenues from mortgage operations, but business outside the U.S. wasn't all that great. Conway Gittens, Reuters