Citigroup said late Thursday that it had to cut its third-quarter earnings because of a $600 million increase in legal expenses. The bank said the increase was the result of 'rapidly-evolving regulatory inquiries and investigations.'
The adjustment decreased Citigroup's profit to $2.8 billion from the $3.4 billion that it reported publicly two weeks ago.
Citigroup faces a slew of investigations, including inquiries into possible manipulation of the currency market as well as into potential lax controls in its operations in Mexico.
Banks are obligated by regulators to set aside adequate legal reserves when they become aware of potential fines or settlement amounts. In this case, the bank gained more clarity about its additional legal expenses in the weeks since it reported its results publicly. On Thursday, it filed its full quarterly report, called a 10-Q, with Securities and Exchange Commission.
Shares of Citigroup fell 2 percent in after-hours trading.
Grappling with a tepid mortgage market, the nation's third-largest bank by assets reported disappointing third-quarter earnings growth.
Posted by Unknown on Thursday, October 30, 2014 - Rating: 4.5
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