Citigroup reported a loss of 54 cents for the April-to-June quarter, which was not as bad as the 66 cents analysts were expecting. The loss reflects $7.2 billion in writedowns, which again was lower than the $9 billion or so that the most pessimistic analysts were expecting. As a barometer of how the credit crunch has hit the bank, we note that revenue was down nearly 30 percent from a year ago. Still, the quarterly upside surprise was additional good news from the commercial bank sector, in line with the positive results from Wells Fargo and JPMorgan Chase. Right now, the capital situations seems to be in hand. But we've learned that it's unwise to assume the worst is over. Still, there are plenty of assets to be sold--Citigroup is in the midst of a large restructuring that will call for many asset sales--and that just may be the only source of capital it needs going forward.

For more:
- here's an article on earnings from CNNMoney.com

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