After announcing a decline in net income of roughly 60% from the 3Q06, Citigroup blamed the drop in earnings on the weak performance in its fixed income credit market activities, write-downs in leveraged loan commitments, and increases in consumer credit costs. The firm announced losses on approximately $1.3 billion pre-tax of subprime MBS that were being warehoused for future CDOs, CDO positions, as well as leveraged loans warehoused for future CLOs. The bank also announced losses of approximately $600 million pre-tax in fixed income credit trading as a result of significant market volatility and the pricing dislocation.
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The Philadelphia-based bank's parent company, Republic First Bancshares, had been roiled by a yearslong proxy battle involving activist investors groups and its former CEO.
April 26 -
Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
April 26 -
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24