US banks prepare for further writedowns
Citigroup to record another $11bn of losses, according to respected analyst.
US investment banks are poised to make further huge writedowns to their
sub-prime related portfolios this week, as they report first quarter numbers.
Citigroup is expected to record a further $11bn (£5.6bn) of writedowns when
it reports on Friday, according to one of the most influential analysts on Wall
Meredith Whitney, the analyst whose bearish reports on Citigroup prompted
death threats, said that she expected a writedown, which would be on top of $18
billion of writedowns in the third and fourth quarters,
Analysts also expect Merrill Lynch, which reports on Thursday, to take
writedowns of around $5bn, while JPMorgan Chase is expected to take a $2.8
billion writedown when it announces its first-quarter results on Wednesday, the