UPDATE 1-Citigroup loses $1.4 bln on securitizations Fri Oct 31, 2008 8:20pm EDT
NEW YORK, Oct 31 (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) lost $1.4 billion from packaging credit card loans into bonds in the third quarter, a regulatory filing showed on Friday.
The loss reflects in part the worsening performance of credit card loans as the U.S. economy deteriorates. In the third quarter of 2007, Citigroup earned $169 million from packing credit card loans into bonds.
Citigroup said earlier this month that global credit card revenue had declined 40 percent, partly due to lower securitization results, but it did not disclose at the time the precise figure.
Struggling Citi bids farewell to No. 1 spot Citigroup Inc., Vikram Pandit's now-wounded banking giant, is scrambling to cut costs and shed troubled assets, as rivals seize opportunities to fill the void left by Citi's retreat.