Citigroup says it may end up holding more bridge loans in third quarter

By Reshmi Basu

New York, July 20 - Citigroup Inc. may be stuck with more leveraged loans for corporate buyouts, the bank said during a conference call Friday to discuss its second quarter results.

Last quarter the bank was unable to sell four bridge loans, according to chief financial office Gary Crittenden.

However, he said Citigroup was prepared to see that trend continue into the third quarter as the credit environment makes riskier loans less attractive.

But he noted that the bank was comfortable with the exposure to those loans on its books because they were "high quality."

This is "not really a credit issue but more about re-pricing," added Crittenden.

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