Fred Business News - Citigroup Inc.'s chief financial officer on Thursday warned that the nation's largest bank by assets would suffer more "substantial" writedowns on debt investments in the second quarter.

CFO Gary Crittenden also said that there will likely be more writedowns related to leveraged loans and bond insurers.

Citigroup shares fell 77 cents, or 3.8%, to $19.64 by early afternoon trading.

Crittenden did say that Citi's second-quarter writedowns on structured debt products known as collateralized debt obligations, or CDOs, would be lower than they were in the first quarter. In the first quarter, Citigroup marked down the value of its CDOs by about $3 billion. All told, the bank in the first quarter wrote down more than $14 billion.

The executive spoke at a conference hosted by Deutsche Bank. His comments come on the heels of profit declines at three major Wall Street investment houses, and Fifth Third Bancorp's decision to raise $2 billion in capital. Futures and options broker MF Global Ltd. has also warned that tight credit spreads will weigh on its fiscal first-quarter earnings.

Source: Cnn.com

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