Citi Plans More Mortgage Cuts But Needs Less Than Before

Citigroup's latest planned global headcount reduction will include some unspecified positions in the mortgage area but the company considers itself to already have made relatively strong progress in reducing more problematic residential RE loans. The company said in a presentation to investors and employees Monday that it has no remaining exposure to payment-option adjustable-rate mortgages, and the $218 billion of remaining residential RE loans it has represent 11% of its assets. Some competitors still have some option ARM exposure and mortgages represent from 13% to 25% of their assets, Citi said. The company plans to cut its headcount to about 300,000 from 352,000 at the end of the third quarter. Attrition and previous announced divestitures will make up a significant portion of the cuts.