Citigroup posts $10B loss, cuts dividend 40%; Dow plunges 277

CBS

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[Music] Cityroup revealed just how hard the mortgage mess hit its bottom line. The banking giant lost a staggering 10 billion last quarter because of home loans gone bad. It's now cutting 4,200 jobs and slashing the dividend to pay shareholders by 40%. Cityroup is getting a shot in the arm. a 12.5 billion dollar cash infusion from a group of investors including the governments of Kuwait and Singapore. Making matters worse, a report that showed December retail sales were even weaker than first thought. On Wall Street, the Dow plunged 277 points. The NASDAQ Composite slid 60. We could see the first hike in the federal gasoline tax in 15 years. The Federal Transportation Commission recommends raising the tax by 40 cents a gallon over 5 years to ease congestion on the nation's highways and repair crumbling bridges and roads. And it is certainly a big day for Apple fans. At the annual Mac World in San Francisco, CEO Steve Jobs announced a plan to offer video movie rentals through its iTunes online store. He also unveiled the world's thinnest notebook computer. It is 1 in thick and weighs less than 4 lb. That's your money watch. Log on to cbsnews.com for more. In New York, I'm Alexis Christopherus.

Mortgage fraud cases double; Dow jumps 171 on IBM earnings

CBS

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[Music] mortgage scams are on the rise the FBI says Federal mortgage fraud convictions have more than doubled in the past year to some 12200 cases and officials expect more foreclosure scams this year as criminals prey on the growing number of homeowners struggling to make ends meet as their subprime interest rates reset higher and more dire predictions about the housing market The Mortgage Bankers Association says mortgage lending will fall by 16% this year the group also predicts home resales will drop 13% and that the average home price will fall about 2% we'll see if Wall Street can build on Monday's gains a strong preliminary earnings report from IBM helped bring the buyers out of hiding and the Dow ran up 171 points the NASDAQ rallied 38 investors will be scrutinizing economic reports on inflation and retail sales for signs of a recession Wall Street will also be bracing for earnings news from City group and chipmaker Intel Apple stock is in the spotlight the annual Mac World Conference gets underway today in San Francisco CEO Steve Jobs is expected to announce plans for a digital movie rental service that would operate through iTunes Apple stock has doubled since last year's conference when jobs unveiled the long awaited iPhone that's your money watch be sure to log on to cbsnews.com for more in New York I'm Alexis christopherus