Magazine article American Banker

Reed Sees Tough Times in the Western U.S

Magazine article American Banker

Reed Sees Tough Times in the Western U.S

Article excerpt

Reed Sees Tough Times in the Western U.S.

NEW YORK - Credit problems in both real estate and consumer loans are worsening in the Western United States, Citicorp chairman John Reed said Monday.

"In the last month or so the West has joined the East," Mr. Reed told those at a conference sponsored by the Japan Society.

For Citicorp and other banks, he said, the worst month for overall credit problems was February and the problems in the East are still worse than those in the West.

The buildup in real estate and consumer loan problems was "not out of whack with normal cyclical [patterns], but clearly a problem," he said.

Credit Card Writeoffs

While there could be "some substantial" credit card write-offs, he added, that rate in bad times will only be 6% compared to nonperforming rates as high as 30% for some commercial portfolios.

When asked if Citicorp would have a dividend cut, Mr. …

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