Citigroup Bites Big Bullet on Subprime Loans

As you have probably read over and over, most mortgages are sold by the banks initiating them on a secondary market. These secondary investors then service the loans and make a profit. Ah, but who exactly are these secondary lenders. Well, one is the Citigroup company and it is revealing just how bad an investment the loans were. For 2007, Citigroup is writing off 22.2 BILLION DOLLARS. Not surprisingly, this is the biggest loss in the nearly 200 years the company has been in business. As if this isn't bad enough, the CEO has indicated this may only be the beginning and billions more may be written off. The company has already laid off 4,000 people and another 20,000 may be coming.