Page last updated at 22:22 GMT, Tuesday, 29 April 2008 23:22 UK

Citigroup to sell $3bn of shares

Citigroup sign
Citigroup's sub-prime losses so far are second only to those at UBS

Citigroup has announced plans to sell $3bn (1.5bn) worth of new shares to bolster its financial position.

The bank's latest fund-raising comes barely a week after it issued $6bn of preferred shares.

Since late 2007, Citigroup has raised more than $36bn in capital to fund its losses and write-downs from sub-prime mortgages and other debt.

It lost just under $15bn for the six months to the end of March, and its write-downs are second only to UBS.

"What's amazing is, as horrible as this sector is, however much everybody beats it down all the time, there seems to be an endless stream of people who are more than willing to throw money at these guys," said William Smith, chief executive of Smith Asset Management in New York.

Citigroup shares fell about 3% in after-hours trading.


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