HOW BAD ARE THINGS AT CITI?

Citigroup lost $9.83 billion in Q4, in part due to $18 billion in writedowns. Now, after raising over $14.5 billion in new funding from Saudi Prince Alaweed, the Kuwait Investment Authority, and the Abu Dhabi Investment Authority, it seems Citi needs more capital or it is in big trouble.

From MarketWatch:

Sameer Al Ansari, Chief Executive of Dubai International Capital told delegates at a private equity conference that it will take more than the combined efforts of the Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi investor Prince Alwaleed bin Talal to save the bank.

"It's going to take more than that to rescue Citi," Ansari said. He added that more write downs are expected and that Gulf investors would be required to bolster Citi.

Al Ansari said "it would take a lot more money to rescue Citigroup." A spokesperson for Citi was unable to comment immediately when called Tuesday.

CITIGROUP CUTS 17,000 JOBS, SAVES $2.1 BILLION IN 2007

From WSJ.com:

Citigroup Inc., in what's considered its first major overhaul since its formation a decade ago, announced it will save $2.1 billion in 2007 by eliminating 17,000 positions.

The New York financial services giant's long-awaited restructuring will eliminate certain layers of management and reduce its corporate center. Back-office, middle-office and corporate functions will be consolidated, and more than 9,500 jobs will be moved to lower-cost locations, domestically and internationally.

Citigroup sees savings of $3.7 billion in 2008 and $4.6 billion in 2009. It will take a charge of $871 million in the first quarter and pretax charges of $200 million over the rest of 2007. The company will release its first-quarter results Monday.

Over the past year, Citigroup's stock has underperformed hometown rival J.P. Morgan and Bank of America Corp. Last summer, Citigroup's largest individual shareholder, Prince Alwaleed bin Talal, demanded that the company take "draconian" steps to reduce expenses.