Here's how David Trone, analyst at Fox-Pitt Kelton, sees the prospects for Citigroup over the next 18 months: $18.5 billion loss in real-estate loans; $11.5 billion loss in commercial and industrial loans; $11.8 billion loss in credit cards; and $16 billion or so in losses from other loans.

"Those loss estimates, combined with about $10.8 billion in projected write-downs from Citi's legacy purchases (which comprise 10 percent of its asset base), come to a whopping total of $68 billion," notes the New York Times. "After subtracting the $37 billion Citi has set aside in loan-loss reserves and factoring in tax savings from the losses, Mr. Trone calculates that those losses will leave Citi with a $25 billion hole in its balance sheet." Will it be able to earn that much? I think so. But the reality is that this government-owned banks will continue to lag its peers. 

For more:
- here's a New York Times article

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