More Bad News From Citi

Citigroup warns it may be forced to take further write-downs due to continued crumbling of the U.S. housing market. It says in its most recent 10-K that it has been forced to move a $10 billion hedge fund onto its balance sheet after major losses and revealed it has an exposure of $4 billion to the troubled bond insurance sector. It also disclosed that its traders suffered daily losses exceeding $100 million on 15 occasions in 2007. The disclosure may signal that Citigroup's problems go beyond mortgage-related losses.