Citigroup Inc posted the biggest loss in the bank's 196-year history as defaults on home loans forced it to write down the value of subprime-mortgage investments by $18 billion, according to a report on the website of Bloomberg.
The bank reported a fourth-quarter net loss of $9.83 billion, or $1.99 a share, when compared with a profit of $5.1 billion, or $1.03 per share a year earlier, the bank said in a statement today.
The New York-based Citigroup also cut its dividend by 41%, announced 4,200 job cuts and said it will receive $14.5 billion from outside investors to shore up capital.
"Our financial results are clearly unacceptable," chief executive officer Vikram Pandit said in the statement. "We are taking actions to enhance our risk-management processes and improve expense productivity."
Among the investors injecting new capital are Singapore's government, former Citigroup Chief Executive Sanford "Sandy" Weill and Saudi Prince Alwaleed bin Talal, Citigroup's largest individual investor.
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