Citigroup to trim $500 billion in non-core assets Citigroup Inc. plans to reduce about $500 billion of non-core, "legacy" assets over the next several years in a bid to shore up its capital base and divest itself of riskier investments, the banking giant said Friday. CEO Vikram Pandit announced the move during a presentation to investors and analysts at Citigroup's midtown Manhattan headquarters. "These reductions will release capital that we could use in our other businesses," Pandit said. Citigroup's shares, part of the Dow Jones Industrial Average, moved up almost 0.8% in early trading, bucking a broad selling trend on Wall Street. Pandit said the $500 billion figure represents about 22% of the firm's total assets.
AIG shares fall on insurer's huge loss American International Group Inc. shares were under pressure Friday morning, retreating after the blue-chip insurer reported a quarterly loss of nearly $8 billion triggered by huge write-downs on credit investments gone sour. AIG's shares, part of the Dow Jones Industrial Average, traded at $40.90 ahead of the open of trading on the New York Stock Exchange, down 7.4% from the Thursday close. Ratings agency Standard & Poor's downgraded the company and several subsidiaries to AA- from AA. AIG's big aircraft-leasing business was cut to A+ from AA- as well. "Although we expected that AIG would have some losses in the first quarter, the level of the additional losses exceeds these expectations," S&P credit analyst Rodney Clark said.
Oil futures touch an all-time high above $126 Crude-oil futures climbed past $126 a barrel Friday, poised to score a weekly gain of more than 7% with strong demand for diesel fuel and concerns about global crude supplies sending prices to a fresh all-time high. Crude oil for June delivery climbed as high as $126.25 a barrel on the New York Mercantile Exchange. It was last up $1.06 at $124.75. "The poplar theme has now recognized the inordinate advance in heating oil as demand for middle distillates, especially diesel fuel, persists," said Fitzpatrick, in a note to clients. "Traditionally, refiners made more profits at this time of year making gasoline. This, too, has changed." U.S. refiners have been increasing their diesel production in recent weeks, while limiting gasoline output.
Oil Rises to Record Above $125 as Nigeria Cuts Curb U.S. Supply Oil rose to a record above $125 and was set for the biggest weekly gain in more than a year on speculation reduced exports from Nigeria will curb U.S. supplies during the peak summer driving season Nigeria production, which fell to the lowest level in a decade in April, has been cut further this month by rebel assaults on Royal Dutch Shell Plc pipelines. OPEC said yesterday it doesn't need to increase supplies, even as its president warned prices may reach $200 a barrel. ``In the last couple of weeks attacks in Nigeria have been getting worse,'' said Andy Sommer, an analyst with HSH Nordbank in Hamburg. ``Also, the view that oil can go to $200, even though everyone knows it's not the base-case scenario, is bringing in investor flows.''
US shoppers slash spending at end of month Wal-Mart, the world's biggest retailer, today said that many of its customers were forced to cease spending towards the end of each month as high fuel and food costs left Americans penniless in the run up to pay-day. Eduardo Castro-Wright, head of Wal-Mart's US store division, said: "The economy continues to get tougher and the ’paycheck cycle’ is more pronounced for customers than in past months. As money gets tighter for them toward the end of the month, sales drop more than we have seen in the past." He explained that increasingly Wal-Mart customers were trading down and buying cheaper cuts of meat and more pasta to feed themselves.
Barely surviving on credit cards No longer able to turn their homes for cash, Americans are increasingly using plastic to meet their basic living expenses. But many can't afford to pay the bills. These days, more and more people are saying "Charge it." Finding themselves strapped for cash and unable to use their home as an ATM, Americans are increasingly turning to credit cards to cover gas, groceries and other living expenses. But many find themselves struggling to pay the burgeoning bills at a time when even the basic needs are growing costlier. "Other sources of money for a lot of Americans are drying up," said Dick Reed, regional counseling manager of Consumer Credit Counseling Service of Greater Atlanta, who sees more clients with mounting credit card debts these days. "Consumers just don't have a place to go to get money. They are digging themselves into a deeper hole not only to pay for normal living expenses, but to make minimum payments on outstanding debt."
Boats, Motor Homes Get Caught in Credit Squeeze General Electric's decision this week to no longer lend consumers money to buy motorhomes and boats was more bad news for the recreational vehicle and boat industry. While the move by GE Money is likely to prompt the many other lenders in this sector to tighten credit standards and push borrowing costs higher, analysts say it won't significantly worsen the industry's admittedly dismal fundamental outlook. Even before GE , which operates one of the country's biggest and most sophisticated finance companies, announced its intention to exit the retail RV market, rising gasoline prices, falling home values and tightening consumer credit had taken their toll on motorhome and boat sales.
- - - - - - - - - - - - - - - - Archived Page Link
- - - - - - - - - - - - - - - -
RSS
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_7a.gif)