Algos Please Ignore: Citi Slashes Previously Reported Net Income Due To "Legal Investigations" Over FX Rigging Probe

UPDATE:

  • *CITIGROUP SAYS DOJ, CFTC, OTHERS PROBING CITI'S FOREX BUSINESS
  • *CITIGROUP SAYS IT'S FULLY COOPERATING WITH PROBES, INQUIRIES

From 10-Q: Foreign Exchange Matters

Regulatory Actions: Government and regulatory agencies in the U.S., including the Antitrust Division and the Criminal Division of the Department of Justice and the Commodity Futures Trading Commission, as well as agencies in other jurisdictions, including the U.K. Financial Conduct Authority and the Swiss Competition Commission, are conducting investigations or making inquiries regarding Citigroup’s foreign exchange business.

 

Citigroup is fully cooperating with these and related investigations and inquiries.

Nothing to see here move along:

  • *CITIGROUP ADJUSTS 3Q DOWN ON $600M INCREASE IN LEGAL ACCRUAL
  • *CITIGROUP FINL IMPACT LOWERS CITI’S 3Q '14 NET  TO $2.8B FROM $3.45B
  • *CITIGROUP CITES REGULATORY INQUIRIES & INVESTIGATIONS

When did company earnings become like GDP: first release is highest, second is lower, third lowest? Aren't you glad you bailed this trustful people out?

Citi Statement:

Citi announced today that it is adjusting downward its third quarter 2014 financial results, from those reported on October 14, 2014, due to a $600 million increase in legal accruals.

 

The increase resulted from rapidly-evolving regulatory inquiries and investigations, including very recent communications with certain regulatory agencies related to previously-disclosed matters.

 

The financial impact lowers Citi’s third quarter 2014 net income from $3.4 billion to $2.8 billion.

 

 

And this happened...

 

As a gentle reminder...