Citigroup's chief financial officer announced on a investor call that more pain is own the way in the form of further writedowns and losses in the second quarter.

CFO Gary Crittenden's comments sent Citigroup shares down more than 4 percent lower but rebounded to 1 percent at the close. His warning in the wake of Lehman Brother's almost $3 billion loss in the second quarter has reinforced fears that the credit crisis is far from over. The Financial Times reports Mr Crittenden expects further writedowns on subprime holdings, leveraged loans and monoline insurance when it releases quarterly results next month.

He added that Citi’s mortgage and credit card businesses had deteriorated in the past three months as the US economic slowdown and housing crisis continued to take their toll on consumers.