Citigroup

  • 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]

  • 13 Jun 2014 at 2:10 PM

Settlement Watch ’14: Citigroup

The U.S. Justice Department has asked Citigroup Inc. (C) for more than $10 billion to settle a probe into the lender’s sale of mortgage-backed bonds in the run up to the 2008 financial crisis, according to a person familiar with the negotiations. Prosecutors broke off talks with Citigroup on June 9 and are preparing to sue the bank after the lender offered less than $4 billion to resolve the matter, said the person who asked not to be named because the negotiations are private. The Justice Department could file a lawsuit as early as next week, the person said. [Bloomberg]

The folks at Citigroup have gone and ruined an awfully lucrative, awfully simple arbitrage. Read more »

Right now we’re at a dozen (and counting). Read more »

Always remember to put the broadest possible disclaimers of liability into all your marketing documents and contracts. It’s not like anyone is going to read those things anyway, at least not until they’ve already lost $1 billion. Read more »

The civil servants over at the Justice Department has figured out how to spend their time once they finish extracting another big fat check from Brian Moynihan & co. Read more »

  • 14 Apr 2014 at 10:13 AM

Layoffs Watch ’14: Citi

The House of Corbat has asked a few employees to turn in their ID badges and not come back, unless they’re looking to open a checking account, in which case, mi casa es su casa. Read more »