Citigroup (C) Q4 Write-Down Could Be $12 Billion

Shares in Citigroup (C) are off by over 1% today despite a positive report from research firm Punk, Ziegel.

The reason the big bank is trading near its 52-week low may be that Sanford C. Bernstein has forecast the Citi may have to take another $12 billion in write-downs.

Reuters quotes the Bernstein report as saying "We are trimming our estimates for the fourth quarter of 2007 and 2008 to account for capital markets write-downs, loan loss reserve building, slower net interest margin re-normalization in 2008 and reduced buyback activity." If so, Citi could drop through its low and in the direction of $25.

Douglas A. McIntyre