Citigroup Posts Loss on Credit-Card Securitizations

Citigroup Inc. reported its first loss since at least 2005 on credit-card securitizations, signaling that risks may be growing in a business that generated $3.5 billion of revenue in the past three years... The biggest U.S. credit-card lender lost $176 million in the second quarter packaging card loans into securities, the company said in an Aug. 1 regulatory filing.

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Mark Sunshine: "Citigroup's tangible equity ratio is 2% if you re-consolidate its off balance sheet assets. That is catastrophically low. The other thing that was interesting with the Citigroup release was the securities and banking revenue was down 94%. Somehow they managed to bury in the release, that the fee income and a bunch of other components that was the old Salomon Smith Barney has fallen off the side of a cliff.