- Buffett's Berkshire Hathaway Boosts Stake in Wal-Mart
- Time Warner to Spin Off AOL on December 9
- Gates Boosts Waste Management, Coca Cola Stakes
- What's Kept Stock Rally Going? Fear, Not Confidence
- Fed to Keep Rates Low Despite Dollar's Fall: Bernanke
- Citi Shares, A Strange Indicator Of Unemployment?
- Millions Could Have to Repay Part of Obama's Tax Credit
- Hollywood Turns to Porn as Unemployment Rises
- Slideshow: US Cities With Most Underwater Mortgages
- Answers to Your Questions: A Path to Economic Disaster?
- 5 Ways to Play the Chinese Markets: Analyst
- Meredith Whitney: Turns Bearish
- 3 Stock Plays on Rising College Costs
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
- Nov. 16: Unusual Volume Leaders
- Getting to the Heart of the Merck-Abbott Embargo Break
- What MGM's Sale Could Say About Value of Content
- My Ratings on Lowe's & Home Depot: Analyst
MOST SHARED
- Stocks Overvalued, Recession Will Return: Meredith Whitney
- Has Twitter's Finest Hours (Seconds) Come and Gone?
- U.S. May Wind Up Green With Envy
- BofA Ex-Counsel: I Was 'Stunned' When I Got Fired
- Bernanke Offers Something For Everyone
- Fed Likely to Keep Rates Low Despite Dollar's Fall: Bernanke
- Solar Emerges From A Dark Period
- Oil Tomorrow
- Stanford Receiver to Release Funds Of Frozen Acounts
- Warren Buffett's Berkshire Hathaway Almost Doubles Wal-Mart Holdings During Summer
Text Size 
Citigroup is about half-way through cutting 10 percent of the 65,000 employees in its investment banking unit, a person familiar with the job cuts said Monday.
 |
Mary Altaffer / AP |
"More than half of those have already been eliminated," the person told The Associated Press.
A major portion of the remaining job cuts are happening this week, The Wall Street Journal reported Sunday, citing people familiar with the matter.
In total, Citigroup [C
Loading...
()
] has announced 13,200 job cuts this year as it tries to recover from bad investments on mortgages and leveraged loans that cut billions of dollars from its portfolio. Citigroup, which is the nation's largest bank by assets and employs more than 300,000 people worldwide, posted a $5.1 billion loss in the first quarter and a nearly $10 billion loss in the fourth quarter of last year.
Many bank analysts expect the company to report another loss for the current quarter. Chief Financial Officer Gary Crittenden last week warned that Citigroup would sustain more substantial write-downs on debt investments known as collateralized debt obligations, or CDOs, in the second quarter.
Crittenden also said there will likely be more write-downs related to leveraged loans and bond insurers, and that total credit costs would be higher in the second quarter than in the first due mainly to increased reserves in the mortgage portfolio.
Separately, the Financial Times is reported Goldman Sachs [GS
Loading...
()
] reduced the size of its investment banking division last week. In total, the company is expected to reduce the size of the division by 10 percent over the course of this year.
Goldman has been a relatively strong performer throughout the credit crunch and recently turned in an impressive second quarter earnings report.
Print
Email
- Where, what, how.
- CNBC's Jim Goldman asks: Has the sun begun to set on Twitter? Data suggests its best days are over.
- Everyone wanted a piece of Madoff's "Bullship"--the famous buoy sold for $7,500 at auction. You won't believe these prices.
- De Loach Vineyards is selling its pinot noir the old fashioned way, helping to cut energy and transportation costs.
- Why are the Chinese concerned about the progress of U.S. health care legislation?
- CNBC's Maria Bartiromo talks to rapper Snoop Dogg about brand identity in both business and music.
Data is a real-time snapshot *Data is delayed at least 15 minutes