Citigroup May Cut Dividend by 40 Percent, Goldman Sachs Says

Citigroup May Cut Dividend by 40 Percent, Goldman Sachs Says


Dec. 27 (Bloomberg) -- Citigroup Inc., the biggest U.S. bank, may cut its dividend by 40 percent to ``preserve its capital position,'' according to Goldman, Sachs & Co.

The New York-based bank may announce write-offs of $18.7 billion related to collateralized debt obligations in the fourth quarter, analysts including William F. Tanona wrote in a note to clients dated Dec. 26.

Citigroup's shares tumbled 8.1 percent on Nov. 1 after CIBC World Markets analyst Meredith Whitney said the bank may cut its dividend, helping wipe out $369 billion in U.S. stock market value.

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