Parmalat debacle costs Citigroup $351 million in credit costs

Washington, Jan. 20 - Parmalat Finanziaria SpA's bankruptcy cost Citigroup $351 million in credit costs, the New York-based financial institution said in its earnings release. The figure represents the writedown of the majority of the company's unsecured exposure as well as significant reserves taken against secured exposure.

Citigroup still has $302 million more in credit exposure to the Italian food processing company, but most of it is secured by third-party receivables.

In addition, it suffered $21 million in Parmalat-related trading losses and another $15 million in remaining marked-to-market trading exposure.

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