Citigroup Warns Potential For Large Write-Downs In Q2

New York, NY (AHN) - Citigroup (C) chief financial officer Gary Crittenden told investors Thursday the company may take big write-downs in the second quarter for subprime mortgages and leveraged buy-outs.

"If current trends prevail, it is fair to conclude we will continue to have substantial additional marks on our subprime exposure this quarter," Crittenden said during a conference call sponsored by Deutsche Bank, according to Dow Jones Newswire.

Citigroup plans to set aside more money in the second quarter than it did in the first to offset the cost of failing consumer loans, said Crittenden. The bank may also see a credit value adjustment due to its bond insurer exposure, he said.

Citigroup reports second quarter earnings July 18.

Shares of Citigroup traded lower 1.7 percent, closing Thursday at $20.13