Wednesday, January 16

Citi likely to cut dividend, 20,000 jobs

NEW YORK: Citigroup Inc is likely to announce on Tuesday a significant dividend cut, at least $10 billion of new capital and a writedown of as much of $20 billion, the Wall Street Journal reported on Monday. The largest US bank is also likely to announce more than 20,000 job cuts when it posts fourth-quarter results on Tuesday, the Journal reported, as new chief executive Vikram Pandit tries to cut costs. "You have a new person at the helm. He's going to do what he can to clear the decks," said Ralph Cole, portfolio manager at Ferguson Wellman Capital Management in Portland, Oregon. The new capital is expected to come from sources including the Government Investment Corp (GIC) of Singapore, the Kuwait Investment Authority, and Saudi Prince Alwaleed bin Talal, already one of the largest Citi shareholders, the Journal reported, citing people familiar with the plans.


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