Financial stocks spiraled downward Monday as
(C - Get Report)
furiously traded losses trampled the sector.
Citi's much-maligned CEO, Chuck Prince,
over the weekend, but the banking giant also estimated current-quarter writedowns of between $8 billion and $11 billion from the shrinking value of its subprime-related investments. And, as disclosed in its quarterly filing, Citi also shaved 3 cents a share, or $166 million, off its previously reported
third-quarter profit tumble
to a restated 44 cents a share.
Fitch lowered Citi's debt rating and Standard & Poor's put it on negative credit watch, though Prince's departure prompted Punk Ziegel to upgrade the stock to market perform from sell. Citi Europe Chairman Win Bischoff will serve as acting CEO while a permanent replacement is sought, and Executive Committee Chairman Robert Rubin will assume Prince's former Chairman position. Citi shares fell 5.5% to $35.67 in very heavy trading.
Prince is but the latest executive casualty resulting from the ongoing credit-crunch travesties, joining
just-ousted CEO Stanley O'Neal
COO Warren Spector, who was
given the boot
earlier this year. Shares of the firms gave up 3.8% and 3.1%, respectively, after Lehman Brothers cut both to equal-weight from overweight amid a larger sector downgrade of brokers and asset managers.
Citi, Merrill and Bear are among the most egregious examples of big financial-services firms getting
, but even perceived stalwarts like
(GS - Get Report)
(JPM - Get Report)
were losing ground Monday. The brokers each recently reported
third-quarter earnings, although Goldman stock has since Friday been battered by
rumors of big upcoming writedowns