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Citigroup Sees $305 Million Charge From Foreclosure Settlement

By Donal Griffin - Jan 7, 2013

Citigroup Inc. (C) said it expects to book a $305 million pretax charge in 2012’s fourth quarter as part of a settlement with federal regulators over foreclosure lapses.

Existing loan-loss reserves should cover about $500 million of relief that Citigroup will provide for homeowners, including loss-mitigation and other foreclosure-prevention measures, the New York-based lender said today in a statement.

To contact the reporter on this story: Donal Griffin in New York at dgriffin10@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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