Gary Crittenden, Citi's Chief Financial Officer, acknowledged Thursday that his firm was likely to make 'substantial' asset writedowns in the second-quarter, confirming that the firm's business remains under pressure.

Speaking at a Deutsche Bank Securities investor conference call, Crittenden said: 'We will continue to have substantial additional marks on our subprime exposure this quarter.....The marks this quarter (however) are unlikely to be of that same magnitude (as the $6bn written down in the first-quarter), but again they are still sizable marks'.

Citi shares fell back some 4% after the disclosure, but recovered to close just 1% off at $20.17. The news is yet another blow to Citi investors, who were hoping that new(ish) CEO Vikram Pandit could make a relatively quick fix. This now shows that Citi's problems are a lot deeper than originally feared.

And Bloomberg reports that Goldman analysts have come out and said that they expect Credit Suisse, Deutsche and UBS to have to book additional asset writedowns this quarter. UBS is thought likely to take a $3.9bn earnings hit, with Credit Suisse taking a $1bn charge and Deutsche a possible $748m in additional writedowns in the period.

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