Citi Release Confirms ~$2.7B in Legal, Related Charges, $800M in Repositioning Costs of ~$800M

Citi (NYSE: C) announced today that it expects to incur legal and related charges ofapproximately $2.7 billion and repositioning costs of approximately $800million in the fourth quarter of 2014. With these items, Citi expects to bemarginally profitable for the quarter.The estimated $2.7 billion of legal and related charges result fromcontinually evolving inquiries and investigations primarily relating topreviously disclosed matters. These include foreign exchange investigations,LIBOR-related investigations and anti-money laundering and related complianceinvestigations.The $800 million of repositioning costs are higher than anticipated as Citiidentified additional opportunities to lower headcount and rationalize itsreal estate footprint.Citi CEO Michael Corbat said, “We have made significant progress insimplifying and streamlining our company and these repositioning actions willfurther enhance our ability to serve our clients efficiently and focus onthose areas with the greatest potential for returns. Also, we believe theselegal charges should cover a significant portion of our outstanding legalmatters based on current information.”Citi's estimated legal and related charges for the fourth quarter of 2014 arebased on currently available information and could change based on furtherdevelopments. Citi will announce its fourth quarter of 2014 results on January15, 2015.Citi, the leading global bank, has approximately 200 million customer accountsand does business in more than 160 countries and jurisdictions. Citi providesconsumers, corporations, governments and institutions with a broad range offinancial products and services, including consumer banking and credit,corporate and investment banking, securities brokerage, transaction services,and wealth management.