Citi's Prince Faces Revolt

Prince promised the cuts would lead to better performance, but so far he has been unable to deliver the goods.

Citi said Monday that its losses will include $1.4 billion of writedowns on funded and unfunded highly leveraged finance commitments, and $1.3 billion worth of losses on the value of subprime mortgage-backed securities warehoused for future collateralized debt obligation and other structured securities, it said. The company will also take losses of $600 million pretax in fixed income credit trading due to significant market volatility and the disruption of historical pricing relationships.

Citi also said credit costs rose by $2.6 billion from a year ago in the latest quarter in its global consumer business, due largely to larger loan loss reserves.

Citi was "hit on every level," says Tim Ghriskey, co-founder of The Solaris Group and head of its asset management arm. "The broad scope of the hit is more a reflection of management than anything else."

A spokeswoman for Citi declined to comment, but investors including Ghriskey -- whose firm doesn't own the stock -- expect to see change soon.

"We've seen some of the Street out there calling for his resignation or his replacement," Ghriskey says of Prince. "We've put it at an even chance one way or the other by the end of the year that there will be a decision."

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