Embattled bank Citigroup Inc. announced a hefty $18.1 billion write-down for bad mortgage assets early Tuesday and slashed its dividend. The news of Citigroup's drastic efforts to shore up its balance sheet had been widely expected.
J.P. Morgan Chase & Co. said Wednesday its quarterly profit fell 34%, undercut by a major write-down of subprime assets, deteriorating performance in its home-equity business and a big drop in investment-banking activity.
Net income dropped 34% to $2.97 billion, or 86 cents a share, from $4.53 billion, or $1.26 a share, earned in the final three months of 2006, as the company recorded a $1.3 billion write-down on its subprime positions.
Merrill Lynch & Co. reported a record loss after writing down at least $15 billion of failed investments, ousting its chief executive officer and losing almost half of its market value in 2007.
In less than a week, we've seen over $30 billion in writedowns. That's a ton a value lost.