Angry Banker

Citibank's Problems Are Far from Over

Strange analysis. Yes, credit costs were higher, but partially because of significant building of loss reserves. This means the company is now in a better position from a balance sheet perspective than before (much better actually). So as the losses flow through, the company's capital will not take a significant hit because as the losses reduce in future quarters (granted, this may not be until the 1st quarter of 2010), the company will be able to release reserves. In fact, the company is in a much healthier position than previously.