• 14 Jul 2014 at 12:34 PM
  • oh that

$7 Billion Settlements Aside, Citi’s Earnings Are Kick-Ass

Citigroup‘s profits tumbled 96 percent in the second quarter, dragged down by a huge charge related to its recently announced deal with the Justice Department to settle an investigation into its sale of mortgage securities in the run up to the financial crisis. The charge for the legal settlement totaled $3.8 billion, marring an otherwise relatively strong quarter for the bank that was helped by better than expected trading results. Not accounting for the legal charge, or other one-time items, Citigroup exceeded Wall Street expectations in the second quarter with adjusted earnings of $1.24 a share, On that basis, analysts had been expecting Citigroup would earn $1.05 a share, according to a survey by Thomson Reuters…Earlier on Monday, the bank announced a $7 billion deal with the Justice Department. The deal includes a $4 billion cash penalty, the largest yet by a large bank to settle federal investigations of mortgage misdeeds. [Dealbook]

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Comments (4)

  1. Posted by Messi Situation | July 14, 2014 at 12:35 PM

    What time do the Citi layoff numbers come out? Im thinking about 7-10% rif is about the number

  2. Posted by rifquant390g | July 14, 2014 at 12:55 PM

    what's 7-10% of 0?

  3. Posted by Blorf | July 14, 2014 at 1:06 PM

    ham sandwich

  4. Posted by Human Resources | July 14, 2014 at 1:10 PM

    You have it all wrong. We don't want to send the wrong signal with a RIF. We will just announce that bonuses will be "lower" in order to improve earnings.