Business

Citigroup sets aside $2.7bn for legal costs

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Image caption In October, Citigroup was forced to restate its third-quarter earnings as a result of rising legal costs

Michael Corbat, the chief executive of US bank Citigroup, has said the firm is setting aside $2.7bn (£1.7bn) for legal costs in the fourth-quarter.

Costs have risen due to US investigations into Citigroup's behaviour in currency markets, setting the Libor rate, as well as an anti-money-laundering probe.

In October, the bank was forced to restate its third-quarter results.

It wrote off $600m due to the "rapidly evolving regulatory inquiries".

Mr Corbat made the remarks during a presentation at an investor conference, in which he also said that bank would write down $800m in expenses related to real estate and employee headcount.

He said he expects the bank to remain "marginally profitable" during the period.

Shares in Citigroup fell 2.5% after his remarks.

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