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.
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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