Citibank is warning investors to expect a 60% drop in earnings due to “dislocations in the mortgage-backed securities and credit markets, and deterioration in the consumer credit environment.”
“Our expected third quarter results are a clear disappointment. The decline in income was driven primarily by weak performance in fixed income credit market activities, write-downs in leveraged loan commitments, and increases in consumer credit costs,” said Charles Prince, Chairman and CEO of Citi.
Thankfully, Citi has a plan to fix the problem. Free burritos for college students! Yes! This is foolproof.