Citigroup sets $3.5bn fourth quarter charge for legal, other costs

GMT 18:37 2014 Tuesday ,09 December

Arab Today, arab today Citigroup sets $3.5bn fourth quarter charge for legal, other costs

New York - AFP

Citigroup plans to take a $3.5 billion charge in the fourth quarter to cover legal and restructuring costs, chief executive Michael Corbat said Tuesday.
The charge comes as Citi contends with a range of regulatory investigations, including that it joined other banks in rigging interest rates and manipulating the foreign exchange market.
Citi will take a $2.7 billion charge to address these regulatory matters. Like JPMorgan Chase, Deutsche Bank and other giants, Citi has been probed for its actions in the massive foreign exchange market, where regulators belive traders used online chat forums and instant messaging to manipulate the market.
In November, Citi announced it reached settlements with two US regulatory agencies and one British body totaling $1 billion to resolve a first batch of foreign exchange matters. Citi said at the time it still faced "several additional" investigations on foreign exchange and was cooperating with the agencies.
The remaining $800 million in the charge announced Tuesday will cover costs from exiting consumer banking in 11 markets, including Japan.
Despite the big charge, Corbat said he expects the bank to be "marginally profitable" in the upcoming quarter.
Citi shares fell 2.6 percent to $54.91 in mid-morning trade.

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