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Citi Flashes Consumer Copy Of Subprime Check

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Citi (NYSE: C), as one of the only large banks that survived the last couple of weeks with a P/E over 10x (only exceptions we could find were Lazard, which doesn't really count as a true comparable, and UBS), was being valued by the market as large and clunky enough not to be significantly jolted by subprime issues. It's a good thing, because Citi is one of the biggest subprime losers according to the Financial Times.
Citi wants you to know that the $700 million in credit related loses the bank incurred in the last several weeks would have been much more damaging to any bank less poised to remain inert and flatulate in the general direction of market forces.
The bulk of the losses were sustained by the structured credit group led by Michael Raynes, brought in from Deutsche last year specifically to lose almost a billion dollars.
Last month, Chuck Prince told FT that, “When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” Citi may finally be ready to rest its feet after embarrassing itself almost as much as Elaine at the office party.
Citigroup faces the $700m music [FT via Deal Journal (subscription required)]