Citigroup Reports $5.1 Billion Dollar Quarterly Loss
Apr 19th, 2008 | By Doug Casey | Category: US Dollar & Forex TradingCitigroup reports $5.1 billion dollar quarterly loss, and that’s the good news. Bush warned to start defending the buck.
In the currency market, the dollar firmed some more against the euro. Late Friday, the euro was trading at $1.5804 vs. $1.5895 on Thursday.
The buck shot up after Citi, the largest U.S. bank, reported not only its $5.1 billion quarterly loss, but also more than $6 billion in pre-tax writedowns and billions in other downward adjustments caused by the subprime debacle.
And this is the good news.
Nevertheless, a real rebound in the shaky dollar is a distinct possibility. Jean-Claude Juncker, Luxembourg premier and chair of eurozone financiers, told the Luxembourg press that he had been invited to the White House last week just before the G7 meeting, at the personal request of President Bush.
The two leaders discussed the dangers to Europe’s economy of the cratering dollar, and rising calls for protectionism on the continent. Mr. Juncker flat out warned that matters could quickly spin out of control if the U.S. doesn’t take steps to defend its currency.
“I don’t have the impression that financial markets and other actors have correctly and entirely understood the message of the G7 meeting,” Juncker said.
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