Citigroup in shock profit warning

Citigroup shocked investors today with a profits warning after losing billions of dollars in the recent global financial turmoil. Its grim warning came just hours after UBS announced its own substantial losses in the US sub-prime mortgage crisis.

The bank, which is one of the world's most prestigious financial institutions, revealed that net profits in the third quarter of 2007 have nose-dived by 60%.

It blamed "dislocations" in the mortgage-backed securities and credit markets, and also said that its losses from consumer credit have increased.