Banking Industry: Citigroup Expects $2.7 Billion Legal Charge for Quarter - by Michael Corker

Citigroup gave investors a taste of its fourth-quarter results on Tuesday, detailing an expected $2.7 billion legal charge related to multiple investigations facing the bank.

Citigroup has been in settlement talks with federal prosecutors and banking regulators over a range of inquiries related to possible manipulation in the currency market and lax anti-money-laundering controls.

The fourth-quarter charge also reflects the estimated expense of a separate investigation into the role Citigroup and other large banks played in the suspected manipulation of the benchmark London interbank offered rate, or Libor.

The charge suggests that Citigroup is getting closer to settling the investigations because banks are required to set aside money for legal settlements as soon as they have a sense of the likely penalties

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