Goldman Sachs recommends dispose of the shares Citigroup
Investment Bank Goldman Sachs Financial Holding Citigroup added to the list of companies whose shares are encouraged to sell, transfer Associated Press. Goldman Sachs analyst William Tanona found that Citigroup in the next two quarters will have to write off up to 15 billion dollars and possibly reduce dividends.
Message to demote recommendation on shares of American Citigroup led the indices started, begin to drop. Also negatively affected the markets and high oil prices. Already after the first indicator of stock transactions Dow Jones dropped almost 90 points, Nasdaq at 21 item, and S & P 500 by 11 points.
Citigroup back in October 2007, announced a write-off of 3.3 billion dollars of bad debt. In early November, the newspaper The Wall Street Journal estimated that the financial losses may be between 8 and 11 billion dollars. The next day, Citigroup left its head, Prince Charles.
The reason for the losses Citigroup, like many other financial institutions, is a mortgage crisis. The company intends to eliminate its effects by the middle of 2008.
