Citigroup Posts Huge Quarterly Loss

NEW YORK -- Citigroup said Tuesday that a huge write-down for mortgages triggered a nearly $10 billion quarterly loss, about twice analysts' estimates, and that it was raising $14.5 billion, slashing its dividend and cutting 4,200 jobs.

The capital infusion from investors including Singapore, former Citigroup chief executive Sanford "Sandy" Weill and Saudi Prince Alwaleed bin Talal, Citigroup's largest individual shareholder, may help the largest U.S. bank steer through the credit market and housing crises, though analysts said Citigroup faced a tough road ahead.

"People knew it would be a kitchen-sink quarter," said Matt McCormick, portfolio manager and banking analyst at Bahl & Gaynor Investment Counsel in Cincinnati. "I don't think they're out of the woods yet."

Citigroup's fourth-quarter loss of $9.83 billion was its first since the bank was created in 1998 from the merger of Citicorp and Weill's Travelers Group.