"Citigroup announced a steep cut in its stock dividend and another big investment by foreign investors on Tuesday after taking more write-downs related to subprime securities and posting a $9.83 billion loss for the fourth quarter.

"Beginning what is expected to be a grim week for financial company earnings, Citigroup said it was writing down $22.2 billion because of soured mortgage-related investments and bad loans.....

"Facing rising expenses and deepening losses, Citigroup is expected to embark on a major cost-cutting campaign that could result in at least 4,000 layoffs. And thousands more could be in the offing in the coming months...

".....But for Citigroup, things may yet get worse. Expenses, which rose 18 percent in the fourth quarter, remain bloated. It still has heavy exposure to complex mortgage investments, like collateralized debt obligations. And as rising unemployment adds to the gloomy talk about a recession, Citigroup executives set aside billions of dollars more to cover additional losses on home equity loans, credit card debt and personal loans."