Swedish banks exposed to eastern Europe’s sicker economies had a bad quarter. SEB made a small loss after writing off investments in Russia, Estonia, Lithuania and Latvia (where the IMF forecasts GDP to shrink by 12% this year).
Citigroup made a profit of $4.3 billion, but it was saved from spilling more red ink only by the spin-off of its Smith Barney unit. Investors responded negatively to the news from both.