Citigroup Boosts Estimate to $5 Billion for Possible Legal Costs
Citigroup Inc. (C), the third-biggest U.S. bank, increased its estimate for possible costs from legal and regulatory matters to $5 billion amid probes into the lender’s conduct prior to the financial crisis.
The estimate, disclosed today in an annual filing, compares with $4 billion at the end of September and covers potential costs for which Citigroup hasn’t already put aside reserves, the New York-based lender said.
Citigroup Chief Executive Officer Michael Corbat and other Wall Street CEOs are still dealing with fallout from the 2008 financial crisis. U.S. regulators continue to probe the lender’s “mortgage-related” conduct, while Citigroup faces litigation from private investors in securities that lost value, filings show.
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