Citi Mortgages, from Shitty Bank

A Citigroup office.

Citigroup has suffered devastating losses in the U.S. subprime mortgage and housing crisis that began in 2007. By July 2008 Citi has written off more than USD $40-billion* worth of assets and bad loans, and the crisis is not even over yet. Citi share prices have fallen from a high of USD $55 in 2007 to under USD $16 by 2008-07-12, or a drop of 70%, in just under a year.

Citi was ranked the largest bank (by market value) in the world back in 2005, its rank has now fallen off the cliff. The bank is also rapidly selling off assets and issuing new shares at a huge discount to maintain its capital reserve.

The U.S. housing bust can be blamed on many factors, including asleep banking regulators (the Federal Reserve, the U.S. government); banks that completely igonred risks by GIVING AWAY mortgages to people on welfare and with zero downpayment; naive and greedy borrowers who thought loans had no cost; real estate agents, the media and TV shows that endlessly promoted the silly concept of ever-rising real estate prices and borrow-to-renovate home upgrades.

* USD $ 40-billion =
CAD $ 39.7-billion
GBP £ 20.1-billion
Eur 25.1-billion
CHF 40.6-billion (Swiss Franc)
BRL 64.2-billion (Brasilian Real)
HKD $312.0-billion