Three key numbers for Citigroup (NYSE: C) this morning: $24 billion, 20,000, $10 billion.
According to a report on CNBC, the enormous bank is poised to writedown another $24 billion related to bad mortgages, and could lay off 20,000 workers. In addition, the bank may suspend or cut its dividend in an effort to conserve $10 billion per year in cash.
It remains to be seen how the market will react. Obviously, more writedowns and layoffs are bad news but, as I wrote on Friday, cutting the dividend as an alternative to raising money from foreign investors makes sense in light of the depressed share price.
But that doesn't mean investors will like it. Receiving cash distributions can feel reassuring in light of daily headlines about how tough the market is. But it's the right thing for the company to do long-term, and hopefully Citigroup will do it.
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