Citi Posts $5.11bn Loss After $13bn In Writedowns

The Wall Street Journal reports that Citigroup came out Friday and posted its second-straight quarterly loss, after booking writedowns of more than $13bn. CEO Vikram Pandit has vowed to slash costs and is reported as saying that 'it is clearly feasible for us to take 10, 15, 20% off our cost base, especially in information technology and operations'. Tens of thousands of job losses are now likely to go across the board.

Bloomberg reports that JPMorgan Chase has raised $6bn in hybrid bonds to beef up its balance sheet. Although seen as a firm which is better-placed than most in the current market turmoil, JPMorgan has still sustained some $10bn in asset writedowns and losses since the beginning of 2007.

CNBC reports that, despite the fact that Merrill Lynch CEO John Thain said earlier this week that his firm wouldn't need to raise more capital, he now acknowledges that this might not be the case. Speaking following the announcement of the firm's $1.97bn loss Thursday, Thain said that, although Merrill has no plans to issue common stock, it is open to issuing preference shares.

Thain also said that he remained unsure whether we have really seen the worst of the current market crisis. He said: 'I hope those who say we are at the end are correct. I am somewhat more sceptical.....We haven't yet seen the full impact on the real economy'.

The Daily Telegraph reports that shares in Royal Bank of Scotland rose in early trading Friday on the news that the bank is considering launching a rights issue of between $10bn - $24bn to shore up its balance sheet.  The bank said in an e-mail statement Thursday that it 'notes recent speculation about a possible rights issue. RBS confirms that its Interim Management Statement covering trading performance and capital will be made next week'.

Finally, The Wall Street Journal reports that Societe Generale Chairman Daniel Bouton is to give up his CEO role, being replaced by his deputy, Frederic Oudea, who only last month was promoted from CFO. Oudea will take on his new responsibilities from May 1st.