FOR IMMEDIATE RELEASE
June 26, 2002
 
Citigroup Statement Regarding Exposure to WorldCom
 
New York, New York — In light of WorldCom’s announcement concerning the restatement of its earnings, Citigroup’s Chief Financial Officer Todd Thomson outlined Citigroup’s exposure to WorldCom as follows:
  • In the Corporate & Investment Bank, we expect our net credit losses to be negligible. We expect modest losses arising out of our role as market maker and other positions in WorldCom publicly-traded securities.
  • Through our insurance companies’ $70 billion fixed income portfolio, we estimate the face value exposure to various WorldCom bonds to be approximately $85 million at Travelers Property Casualty and about $250 million at our life and annuity companies.
  • In addition, we estimate $40 million in possible exposure in other areas throughout Citigroup.
“While we are currently assessing the level of impairment on these securities, we expect that the financial impact to Citigroup should be relatively modest,” said Thomson.
 
 
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Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup’s trademark red umbrella include Citibank, CitiFinancial, Primerica, Salomon Smith Barney, Banamex, and Travelers. Additional information may be found at: www.citigroup.com.