Citigroup (C)

RECLASSIFICATION OF FINANCIAL ASSETS

The Company reviewed portfolios of debt securities and loans throughout the fourth quarter of 2008 and identified positions where there has been a change of intent to hold the debt securities or loans for periods of time much longer than those originally anticipated. The Company believes that the expected cash flows to be generated from holding the assets significantly exceed their current fair value which has been significantly adversely impacted by the reduced liquidity in the global financial markets. As such, the Company anticipates returns on these assets will be optimized by holding them for extended periods or until maturity, rather than through an exit strategy in the short term. During the fourth quarter of 2008, the Company reclassified certain debt securities and loans into accounting categories with measurement based on amortized cost to align the accounting treatment with the revised asset holding periods.

RECLASSIFICATION OF FINANCIAL ASSETS

The Company reviewed portfolios of debt securities and loans throughout the fourth quarter of 2008 and identified positions where there has been a change of intent to hold the debt securities or loans for periods of time much longer than those originally anticipated. The Company believes that the expected cash flows to be generated from holding the assets significantly exceed their current fair value which has been significantly adversely impacted by the reduced liquidity in the global financial markets. As such, the Company anticipates returns on these assets will be optimized by holding them for extended periods or until maturity, rather than through an exit strategy in the short term. During the fourth quarter of 2008, the Company reclassified certain debt securities and loans into accounting categories with measurement based on amortized cost to align the accounting treatment with the revised asset holding periods.