Due to losses in after the sub-prime crisis, Citi might write down as much as $24 billion, CNBC reports. It is also possible that the company might lay off as many as 20,000 workers .
Citi’s plans are expected to be released Tuesday, when the bank reports fourth-quarter earnings. CNBC also says Citigroup could announce that it is cutting dividend payment.
Citi intends to raise as much as $15 billion from various foreign and domestic entities including its largest shareholder, Saudi Arabian Prince Alwaleed bin Talal, CNBC reports. Raising enough capital could keep layoffs to a minimum. Other reports suggest that China Development bank is among other investors who might help Citi. China has become and increasing force of capital market to help bail out banks undergoing losses from the sub-prime crisis.
Last week the Financial Times reports that Citigroup was adding to its capital-market raising efforts by seeking up to $14 billion from Chinese, Kuwaiti and public market investors. The bulk of the money would come from China. The Kuwait Investment Authority would contribute about $1 billion, the FT reports.
Citi received $7.5 billion in new capital from the The Abu Dhabi Investment Authority only weeks after its former chief executive officer, Charles Prince, was ousted amid news of the heavy losses related to the sub-prime mortgage crisis.