Foreign Exchange RISKS Could Cause BIG HIT for Citigroup

Facing more problems thanks to the global marketplace, Citigroup Inc. (NYSE:C) could see a $3 billion to $5 billion “hit” this quarter from foreign exchange, according to Portales Partner LLC analyst, Charles Peabody.

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On Wednesday, in an interview on Bloomberg Television’s Bloomberg Surveillance, Peabody said, “You will see value destruction in terms of their book value as a result of their foreign-exchange risk,” in regards to Citigroup.

Peabody added that the big U.S. lenders, such as Bank of America Corp. (NYSE:BAC) and Wells Fargo & Co. (NYSE:WFC), don’t bear the same risks as Citigroup as they concentrate more on domestic markets.

Shares of Citigroup (NYSE:C) are up 2 cents at $28.52 per share as of 12:45 pm EST Wednesday.

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