Citi likely to announce dividend cut, layoffs

Jan 15, Reuters

(New York) Citigroup Inc is likely to announce on Tuesday a significant dividend cut, at least $10 billion of new capital and a writedown of as much of $20 billion, the Wall Street Journal reported on Monday.

The largest U.S. bank is also likely to announce more than 20,000 job cuts when it posts fourth-quarter results on Tuesday, the Journal reported, as new Chief Executive Vikram Pandit tries to cut costs.

"You have a new person at the helm. He's going to do what he can to clear the decks," said Ralph Cole, portfolio manager at Ferguson Wellman Capital Management in Portland, Oregon.

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photo: People walk past a Citibank branch in New York February 17, 2007. Citigroup Inc is likely to announce on Tuesday a significant dividend cut, at least $10 billion of new capital and a writedown of as much of $20 billion, the Wall Street Journal reported on Monday (REUTERS/Keith Bedford)