There has been a lot of talk recently that the worst of the credit crisis is over. When it comes to Citigroup, some would beg to differ. William Tanona, respected financial services analyst at Goldman Sachs, has lowered his call on many banks to neutral, but designated Citigroup as an outright sell. The Financial Times jokes that Goldman has it in for its competitors. But there is a strong case to be made for what the analyst calls "multiple headwinds in both its retail banking and investment banking businesses over the next couple of quarters." He estimates Citigroup will take an additional $8.9 billion in net writedowns for the second quarter, mainly due to CDOs and hedges via bond insurers. Most of the $12.5 billion in capital that it has raised will be taken up by dividends, leaving its capital position even worse off than before. 

For more:
- here's the Financial Times item

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