Citigroup (C) Stock Up $7.46 This Year as Bank Confidence Improves
Citigroup’s (NYSE:C) stock is up 28% in 2012. Shares are trading supportively above $28 per share as investors easing their fears of the banking giant’s bumps in the investing road. Here’s the latest news on Citigroup (NYSE:C) today:
Citigroup (NYSE:C) said the monetary component of its residential loan servicing and origination practices settlement is to be paid in three parts: a payment in cash upon final settlement; customer relief payments; and refinancing concessions, for a total value of approximately $2.2B.
Citigroup (NYSE:C) expects that existing reserves will be sufficient to cover customer relief payments and all but a small portion of the cash payment called for under this settlement. Citi (NYSE:C) will adjust its Q4 financial results to reflect an additional $84M charge. The impact of the refinancing concessions will be recognized over a period of years in the form of lower interest income. Citi (NYSE:C) will also adjust its Q4 financial results to reflect an additional $125M charge in connection with the resolution of related mortgage litigation.
The latest news from the Credit Suisse Financial Services Forum on Citigroup: Citigroup (NYSE:C) sees expenses declining $2.5-$3B in FY12. Citigroup CFO says bank will restructure further if needed. Citigroup (NYSE:C) says driver of revenue decline in FY11 was unwind in Citi Holdings. Citigroup sees Citi Holdings expense going to nothing, when wind down complete. Citigroup looking to pick up business from pullback in European banks. Citigroup CFO says confident they can begin returning capital in FY12. Citigroup will restructure if revenues don’t recover. Citigroup CFO: “ratings agencies in strange mode”, focused on past.
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