Citigroup Inc. faces the prospect of $8.9 billion in additional write-downs in the second quarter, and it may have to cut its dividend for the second time this year or sell more common stock to raise capital, an analyst at Goldman Sachs & Co. said today. Citi's stock opened today at $17.26 per share, down 67% from the 52-week high of $52.97 in July 2007. The bank's shares are thus trading at about one-third of where they stood at their yearly peak and are at their lowest level since October 1998, when Citicorp and Travelers Group merged to form Citigroup. "We see multiple headwinds for Citigroup, including additional write-downs, higher consumer provisions as a result of rapidly deteriorating consumer credit trends, and the potential for additional capital raises, dividend cuts or asset sales," analyst William Tanona wrote. A Citi spokesperson did not return a call for comment. The bank already has raised more than $30 billion in the past year, mostly through sales of preferred stock. If it cuts its dividend a second time, Citi will join Washington Mutual Inc. and National City Corp., which have cut their quarterly payouts to just a penny per share in a push to conserve cash. Citi was the biggest U.S. bank by market capitalization just one year ago, but it now trails JPMorgan Chase & Co. and Bank of America Corp. and is valued at just $95 billion, marking a shareholder loss of approximately $155 billion in one year. Citi's U.S. cards segment reported charge-offs of $541 million in the first quarter ended March 31, up 23.2% from Q1 2007 charge-offs of $439 million. Managed loans 90 days past due in the U.S. cards segment exceeded $2.03 billion, rising 34% from $1.52 billion during Q1 2007.

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