Citi C announced today that it expects to incur legal and related charges of
approximately $2.7 billion and repositioning costs of approximately $800
million in the fourth quarter of 2014. With these items, Citi expects to be
marginally profitable for the quarter.
The estimated $2.7 billion of legal and related charges result from
continually evolving inquiries and investigations primarily relating to
previously disclosed matters. These include foreign exchange investigations,
LIBOR-related investigations and anti-money laundering and related compliance
investigations.
The $800 million of repositioning costs are higher than anticipated as Citi
identified additional opportunities to lower headcount and rationalize its
real estate footprint.
Citi CEO 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.”
Citi's estimated legal and related charges for the fourth quarter of 2014 are
based on currently available information and could change based on further
developments. Citi will announce its fourth quarter of 2014 results on January
15, 2015.
Citi, the leading global bank, has approximately 200 million customer accounts
and does business in more than 160 countries and jurisdictions. Citi provides
consumers, corporations, governments and institutions with a broad range of
financial products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, transaction services,
and wealth management.
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