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TheStreet Open House

Citi Offers 'Concierge' Foreclosures: CFO

Stocks in this article: C JPM BAC WFC

NEW YORK ( TheStreet) -- Citigroup (C - Get Report) is sparing no expense when it comes to booting people out of their homes, apparently providing warm towels and restaurant recommendations after taking away the keys from borrowers who have failed to pay their mortgages.

During a media conference call following Citigroup's release of its second quarter earnings results, CFO John Gerspach said ongoing cost estimates related to foreclosures have roughly doubled since the previous quarter.

Citigroup now estimates those costs at $70 million to $80 million annually.

"We need to add a few more people here and there to provide the concierge service now that you need to provide to people when you give everybody their own rep," Gerspach said, explaining the higher estimate.

A Citigroup spokesman declined to elaborate on what was included in the "concierge service."

Citigroup is widely considered to have far less mortgage-related risk than rivals like Bank of America (BAC - Get Report), JPMorgan Chase (JPM - Get Report), and Wells Fargo (WFC - Get Report). Still, Gerspach says mortgages are "the biggest risk that we run right now, and that's why I'm very thankful that we have such a small exposure to it."

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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