Citigroup loyal to customers while experiencing big losses

Citigroup reported Friday a first-quarter net loss of 5.1 billion dollars, hurt by at least 12 billion dollars in write-downs amid soured subprime investments, and said it would cut an additional 9,000 jobs. Will Citigroup look for reasons to raise credit card rates, as we see with other banks involved with subprime? Although Citigroup has …

Mortgage Products Inappropriate for Some People

I read an interesting quote today; “Some people got put in mortgages they never should have been in,” said Donald Marron, who works for the White House Council of Economic Advisers. That is an understated and belated acknowledgement if ever I saw one. It is also ambiguous and says nothing. The problems are not explained …

IMF and Soros agree on $1 trillion of subprime losses

George Soros, the hedge fund legend and billionaire philanthropist, said on Wednesday the subprime mortgage crisis is likely to cause global losses of over $1 trillion. The International Monetary Fund (IMF) issued a similar guess, and Soros seems to agree with the assessment. What started out as an experiment in the United States certainly blew …