Citigroup’s $600M about-face
Citigroup restated its previously released third-quarter profit report by $600 million
Citigroup stunned investors late Thursday when it cut its third-quarter earnings by $600 million, blaming an increase in allowances for legal expenses.
The global banking giant said the increase resulted from “rapidly-evolving regulatory inquiries and investigations, including very recent communications with certain regulatory agencies related to previously-disclosed matters.”
The adjustment reduced Citi’s earnings for the quarter to $2.6 billion from the $3.2 billion it reported on Oct. 14. Earnings per share fell to 88 cents from a previously-reported $1.07.
Citi’s statement did not provide any details about the pending legal issues. On Oct. 14, Citigroup disclosed an outside law firm it hired had uncovered fraud in the security services business of its Banamex unit in Mexico.
Citigroup is also among several banks under investigation by U.S. and European authorities for possible manipulation of the currency market.
Shares of Citigroup fell 1.8% to $52.20 in after hours trading on Thursday’s news. The stock closed regular trading up 51 cents, or 1%, to $53.15.
Source: Usatoday-Citigroup’s $600M about-face
