Citigroup (C) Has $500 Million Credit Loss

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By Douglas A. McIntyre Updated Published
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Chuck Prince is likely to be on the hot seat again, but, his troubles may be worse than in the past.

According to The FT the bank "lost more than $500m in credit business in recent weeks, making it one of the biggest casualties of the crisis." The paper added "the losses were made largely in the structured credit business run by Michael Raynes."

Citi had begun to recover from two years of performance that lagged behind its rivals. Prince has not be viewed as a worthy successor to former CEO Sandy Weill.

After badly under performing the shares of JP Morgan (JPM) and Bank of American in the second half of 2006, Citi’s stock still runs well behind JPM but is comparable to BAC.

That may change now. There were rumors that Prince was in trouble. Those are likely to surface again.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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