BANKING: Not Made Of Money

Not Made Of Money

As the real estate slump deepens, it is sending U.S. bank profits into the cellar. Last week Manhattan-based Citicorp, the largest U.S. bank holding company, blamed $573 million in bad real estate loans for a 38% decline in third-quarter earnings, which fell to $221 million. Chemical Banking Corp. reported a $43.7 million loss for the third quarter and slashed its quarterly dividend on common stock from 68 cents a share to 25 cents a share. In Los Angeles, Security Pacific's profits for the quarter dropped 27%, to $135 million. Other banks are expected to report substantial losses in the coming weeks.

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