AP
Citi Cuts Dividend After Posting 4Q Loss
Tuesday January 15, 6:43 am ET
By Madlen Read, AP Business Writer
Citi Cuts Dividend After Writing Down $18.1B and Getting $12.5B in Capital From Investors
NEW YORK (AP) -- Citigroup Inc. is cutting its dividend after posting dismal results for the fourth quarter, when the bank's mortgage portfolio lost $18.1 billion in value.
On the hunt for cash, the nation's largest bank said Tuesday it also got a $12.5 billion investment from outside investors, including $6.88 billion from the Government of Singapore Investment Corp.
Other investors were Capital Research Global Investors, Capital World Investors, the Kuwait Investment Authority, the New Jersey Division of Investment, shareholder Prince Alwaleed bin Talal of Saudi Arabia and former chief executive Sanford Weill and his family foundation.
The moves were widely anticipated on Wall Street after months of scrutiny over the bank's ratio of cash to debt. That ratio weakened when Citigroup lost money in mortgage-backed bond instruments called collateralized debt obligations and brought $49 billion in hemorrhaging funds known as structured investment vehicles onto its books.
As a result of the write-downs Citi lost $9.83 billion in the fourth quarter.