Citigroup posted a huge net loss, hit by $17.4 billion in subprime-related write-downs. The bank slashed its dividend by 41% and announced plans to sell another $14.5 billion in preferred stock
WSJ
A better buy now then was a month ago -- but not in my view. A looong way to go.
More evidence as to why IBM released the numbers part of their earnings early yesterday at 6 am. 
They said dividend was not going to cut, Liar, Liar, your pants are on fire ! But we here on the board new better.
Citigroup plans big dividend cut — cash infusion, write-down, job cuts also in store
Citigroup Inc. is expected to announce a sizable dividend cut, a cash infusion of at least $10 billion and a write-down of as much as $20 billion in mortgage-related investments as part of its fourth-quarter earnings report, people familiar with the plans said.
Vikram Pandit, Citigroup's chief executive, also is expected to unveil a cost-cutting plan that is likely to include substantial job cuts. The moves are part of his push to shore up the company's finances, including replenishing its depleted capital.
At a board meeting yesterday, Citigroup directors were poised to sign off on Mr. Pandit's recommendation to cut the bank's quarterly dividend payment, according to a person familiar with the matter. The size of the cut wasn't clear, but analysts and some investors have been bracing for it to get sliced roughly in half from the current 54 cents a share. A 50% reduction would save Citigroup more than $5 billion a year.
For investors, the dividend cut will be an especially painful sign of how badly Citigroup has stumbled. Citigroup executives had insisted for months that the payout was safe, despite the widening conclusion by analysts that the bank had little choice but to cut it. A smaller dividend could be a sign that Mr. Pandit is willing to consider even more radical steps, such as breaking up the company.
Meanwhile, Citigroup has lined up several investors to pour funds into the cash-strapped company, say people familiar with the matter. The investors include the Government Investment Corp. of Singapore, which would be the largest investor; the Kuwait Investment Authority; and Saudi Prince Alwaleed bin Talal, a longtime Citigroup shareholder. At least one U.S. money-management fund also is likely to participate in the infusion.
The expected investments, coming on top of Citigroup's sale in November of a $7.5 billion stake to the Abu Dhabi Investment Authority, would make the company by far the largest financial-institution recipient of cash from so-called sovereign-wealth funds.
Highlighting the deep pools of cash available in Middle Eastern and Asian funds, Citigroup in recent days managed to quickly line up fresh financing after the Chinese government balked at a planned $2 billion investment by the China Development Bank.
Deep job cuts would represent the second major cost-cutting push by Citigroup in the past year. People familiar with the situation say that more than 20,000 jobs are likely to be eliminated, with the resulting expense included in a restructuring charge.
Citigroup's investment bank is expected to be hardest hit, with roughly 6,500 layoffs expected, one person said. Last spring, Citigroup said it would cut 17,000 of its employees, representing about 5% of its global work force of more than 300,000.
Mr. Pandit apparently is hoping today's announcements will allow him to move beyond the cleanup phase of his job. Tomorrow, he is set to huddle with top managers at Citigroup's sprawling corporate retreat in Armonk, N.Y., to hash out the company's future strategy. Next month, Mr. Pandit plans to embark on a "listening tour" of various Citigroup businesses around the world.
While layoffs are already under way, and are expected to intensify this week, Citigroup might not disclose today a specific number of jobs that it is cutting.
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