by Calculated Risk on 1/14/2008 05:51:00 PM

From WSJ: Citigroup Aims to Stabilize Finances

Citigroup ... is expected to announce a sizable dividend cut, cash infusion of at least $10 billion and write-down of as much as $20 billion ...

Vikram Pandit, Citigroup's new chief executive, also is expected to unveil Tuesday a cost-cutting plan that will likely include substantial job cuts...

Remember, last October, when analyst Meredith Whitney received death threats after predicting Citi would have to cut their dividend? From BusinessWeek: The Analyst Who Rocked Citi.

Whitney reasoned that given the current economy, the bank didn't have the means to boost its capital ratios through organic growth. She argued that cutting the dividend or selling assets was the only quick way to raise cash. She predicts that "in six to 18 months, Citi will look nothing like it does now. Citi's position is precarious, and I don't use that word lightly," she says. "It has real capital issues."

If anything, Meredith was too optimistic.