Citigroup Finds More Ways to Lose Money

This is becoming comical

The FT Reports:

Citigroup is to suffer a $1.4bn loss on its loans to LyondellBasell, the chemical group that placed dozens of its subsidiaries under bankruptcy protection this week after failing to restructure $26bn in debt. Citi’s loss, to be recorded in fourth-quarter results mainly as a loan loss reserve, is another setback for the US financial services group and will put further pressure on its financial performance in the last three months of 2008. Citi reports fourth-quarter earnings on January 22.

Citi on Thursday said its gross exposure to LyondellBasell, which is controlled by billionaire Len Blavatnik through his Access Industries, was $2bn. However, the US group has already taken about $600m in writedowns and reserves over the past few months. Other banks, including UBS (NYSE:UBS), Royal Bank of Scotland (NYSE:RBS), Goldman Sachs (NYSE:GS) and Merrill Lynch, now owned by Bank of America (NYSE:BAC), are also believed to have exposure to the 79 LyondellBasell subsidiaries placed under Chapter 11 bankruptcy protection.

I just can't understand at this point why anyone would want to own banking shares..