Citigroup announced a steep cut in its stock dividend and another big investment by foreign investors on Tuesday after taking more write-downs related to subprime securities and posting a $9. The Kuwait Investment Authority, Capital Research and Management, Citigroup’s biggest shareholder, and the New Jersey Division of Investment also made large investments. And it sold ownership stakes it held in Redecard, a Brazilian company in the credit card industry, and an investment advisory arm of Nikko Cordial, a Japanese brokerage it agreed to buy last spring. Citigroup’s board agreed to cut the stock dividend to 32 cents from 54 cents, reversing a position it staunchly held for the last few months. While revenue in its domestic consumer business rose 6 percent, higher credit losses and credit costs led to a loss of $432 million. And as rising unemployment adds to the gloomy talk about a recession, Citigroup executives set aside billions of dollars more to cover additional losses on home equity loans, credit card debt and personal loans. read more

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