Credit woes continue

Citigroup expects to lose $5bil and will cut an additional 9,000 jobs.

But, because this loss was “expected” and half the loss of the previous quarter, the Street treated this as a big positive. More proof of the separation of Wall Street from Main Street.

Meanwhile, some investment bankers and even an outspoken Fed governor think the Federal Reserve needs to do more to get banks to rein in exuberance.