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For
Financial Stocks, Is It Another False Bottom?
($)
THE WALL STREET JOURNAL - Page C1 January
16, 2008
By David
Reilly and Karen Richardson
EXCERPT
[Citigroup]…yesterday
said it took an $18 billion write-down in the fourth quarter
on securities linked to subprime mortgages...After
examining Citigroup's write-downs of collateralized debt obligations,
Janet Tavakoli, president of Tavakoli Structured Finance Inc.,
says the bank might have needed to take an additional $3.3
billion
haircut. She says markets would price in lower values
for pieces of CDOs that Citigroup holds that are thought to be
super-safe.
"The Citi write-downs do not appear to reflect current
market prices," Ms. Tavakoli says. Such increased write-downs
would have pushed Citigroup's overall write-down to about $21
billion, eating further into its capital.
END OF EXCERPT
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