The casualties from the subprime meltdown

Citigroup $9.83 billion fourth-quarter losses
The US’ largest institution was forced to reveal net losses of $9.83 billion for the last three months on 2007. Revenues during the fourth quarter nose-dived by 70 percent from 12 months earlier to $7.2 billion. Citi, which has 200 million customer accounts in 100 countries, said the loss had been caused by a $18.1 billion exposure to bad mortgage debt, while Chief Executive Vikram Pandit described the fall as “clearly unacceptable”. Pandit knows he faces mounting pressure to reverse the banking giant’s fortunes around after taking over from Charles Prince at the end of 2007 once the full extent of the subprime mortgage losses began to emerge.

UBS $11.4 billion fourth-quarter losses
The Swiss-based investment bank posted the largest loss ever by a bank – an eye-watering $11.4 billion loss for the fourth-quarter. A $14 billion writedown in securities infected by the subprime crisis was mainly to blame. On top of this, the colossal downturn in fortunes was the first loss posted since UBS was created from the merger of Union Bank of Switzerland and Swiss Bank Corporation in 1998. UBS is now busy restructuring its investment banking arm in a bid to limit its risks and try and heal its bruised and battered reputation. Funds could be forthcoming from the Middle East and Singapore, according the reports.

Bank of America 95 percent slump in fourth-quarter profits
The US’ second largest bank found exposure to the subprime crisis led to a whopping 95 percent drop in profits to $268 million. CEO Kenneth Lewis described market conditions as “most stressful” since 2001 and that fourth-quarter results were “severely impacted by the ongoing dislocations and in capital markets and the slowing economy”. However, he did offer investors a chink of light at the end of the tunnel by revealing that he was “cautiously optimistic about 2008”. The results were the first quarter when results from LaSalle Bank, bought in October, had been included.

Merrill Lynch $9.83 billion fourth-quarter losses
CEO Stan O’Neal fell on his sword in October once the extent of the exposure to the crisis began to emerge. Following his departure, the Wall Street powerhouse announced a whopping $14.1 billion writedown on the back of failed investments related to subprime mortgages. The firm also recorded a net loss of $7.8 billion in the 12 months to the end of December. New chief John Thain – the former president of Goldman Sachs – said he did not anticipate any further “problems of this magnitude” and that he wanted to “get 2007 behind us”. Here’s to 2008.

Morgan Stanley $3.59 billion fourth-quarter losses
The New York-based bank was forced to sell a 9.9 percent stake in the business to a Chinese state investment company for $5 billion in an effort to get it’s finances back on track. Morgan Stanley’s downturn in fortunes was fuelled by a $9.4 billion writedown from its exposure to subprime and other mortgage-related investments. The losses have heaped pressure on boss John Mack who described the writedown as “deeply disappointing” and said that he would not take a compensation bonus for 2007.

Wachovia 98 percent fall in fourth-quarter profits
The Charlotte-based lender’s results must have got bosses and investors feeling a little hot under the collar when a 98 percent slump in profits for the last three months of 2007 was announced. Wachovia, the fourth largest bank in the US, saw net income fall to $51 million from $2.3 billion a year earlier. Chairman and CEO Ken Thompson said: “We took active and prudent steps in the second half of the year to deal with market disruption and credit deterioration, and we believe this allows us to move forward from a position of strength despite the uncertain economic environment.” The bank set aside $1.5 billon for credit losses.