Citi share price falls after bank announces $2.7bn legal costs

 

Citi share price falls after bank announces $2.7bn legal costs

first_img Show Comments ▼ Shares in Citigroup have fallen by over two per cent in early morning trading, after the US bank revealed it would be taking a $3.5bn (£2.23bn) charge for legal and restructuring operations. The charges are expected to eat up huge chunks of the bank’s fourth quarter profits, yet Citi insisted that it still expects to be “marginally profitable” for the period. Around $2.7bn has been set aside to deal with legal investigations into the bank’s activity. Citi traders have been implicated in the forex rate rigging scandal and the rigging of the Libor interbank lending rate.  Furthermore, in October a unit of the bank’s Mexican subsidiary Banamex was found to be involved in illegal conduct including fraud and the use of intercepted telecommunications.  On top of legal costs, the bank will take a $800m charge for “repositioning costs” as the company looks to descale its international operations. In October Citi was forced to restate its third quarter results due to a “$600m increase in legal accruals”.  Citi chief executive Michael Corbat said: We have made significant progress in simplifying and streamlining our company, and these repositioning actions will further enhance our ability to serve our clients efficiently and focus on those areas with the greatest potential for returns.  Also, we believe these legal charges should cover a significant portion of our outstanding legal matters based on current information. Joe Hall More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgWhy people are finding dryer sheets in their mailboxesnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgConnecticut man dies after crashing Harley into live bearnypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com whatsapp Tags: NULL Tuesday 9 December 2014 12:56 pmcenter_img Citi share price falls after bank announces $2.7bn legal costs whatsapp Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTele Health DaveRemember Pierce Brosnan's Wife? Take A Deep Breath Before You See What She Looks Like NowTele Health DaveUndoHero WarsAdvertisement This game will keep you up all night!Hero WarsUndoMisterStoryWoman Files For Divorce After Seeing This Photo - Can You See Why?MisterStoryUndoMaternity WeekA Letter From The Devil Written By A Possessed Nun In 1676 Has Been TranslatedMaternity WeekUndoThe No Cost Solar ProgramGet Paid To Install Solar + Tesla Battery For No Cost At Install and Save Thousands.The No Cost Solar ProgramUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoUltimate Pet Nutrition Nutra Thrive SupplementIf Your Dog Eats Grass (Do This Every Day)Ultimate Pet Nutrition Nutra Thrive SupplementUndoNational Penny For Seniors7 Discounts Seniors Only Get If They AskNational Penny For SeniorsUndoFungus EliminatorIf You Have Toenail Fungus Try This TonightFungus EliminatorUndo Share last_img

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