Citigroup Inc. lost $1.44 billion during the third quarter from credit card debt it packaged and sold as bonds, the financial services giant reported in a recent regulatory filing with the U.S. Securities and Exchange Commission.

During the same period last year, Citigroup earned $169 million from selling bonds backed by credit card debt (“Citigroup Says It Lost $1.4B on Credit Card Bonds,” Associated Press, Nov. 3, 2008).

With more financially stricken consumers struggling to repay their debts, analysts expect that Citigroup and other credit card issuers could continue to see escalating losses through next year, as consumer delinquencies mount and write-offs of unpaid consumer credit card debt continue to snowball.

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