Citigroup Faces $5 Billion Hit on Dollar’s Rise [NotSoBreaking] - MarketTicker Forums


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User Info	Citigroup Faces $5 Billion Hit on Dollar’s Rise in forum [NotSoBreaking]
Passivesf Posts: 5495 Incept: 2008-02-01	Citigroup Inc. (C) (C)’s book value could take a $3 billion to $5 billion “hit” this quarter as currencies in some of its biggest markets decline against the U.S. dollar, said Charles Peabody of Portales Partners LLC. The Mexican peso and the Brazilian real are among currencies that have weakened, which could lead to “value destruction” for Citigroup, according to Peabody, an analyst for New York-based Portales who was interviewed today by Tom Keene on “Bloomberg Surveillance.” The bank disputed Peabody’s conclusion in an e-mailed statement. Citigroup, ranked third by assets among U.S. lenders, relies on developing nations for more than half its profit as Chief Executive Officer Vikram Pandit pushes deeper into regions such as Latin America and Asia. The New York-based bank has an “intense focus on capturing emerging-market trade,” Pandit, 55, told shareholders in a March 9 letter. http://www.businessweek.com/news/2012-06.... ---------- "Banking institutions are more dangerous to our liberties than standing armies. The issuing power of currency should be taken from central banks and restored to the people, to whom it properly belongs" 2012-06-21 11:35:03 Permalink
Geckogm Posts: 3720 Incept: 2007-06-26 Canyon Lake	Making JPM look good since 2008 2012-06-21 11:38:32 Permalink
Anti Posts: 4292 Incept: 2007-10-09	Taxpayers Face $5 Billion Hit on Citibank's Fail ---------- Health is better than health insurance http://gerson.org/ Over the past 60 years, thousands of people have used the Gerson Therapy to recover from so-called “incurable” diseases such as cancer, diabetes, heart disease and arthritis. 2012-06-21 12:31:57 Permalink
Bishie Posts: 470 Incept: 2007-11-01 Washington, DC	I don't see why I would dispute this as Citibank. It is obvious they own Mexican and Brazilian Banks. So the value of those banks should fall as the dollar increases. However these economies over the long term will grow more than the US. So I also dispute this is "fail" of Citibank. 2012-06-22 02:30:13 Permalink