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Citigroup Forced to Lower Quarterly Results as Legal Costs Weigh

Citigroup announced it's adjusting its third quarter results downward as it sets aside an additional $600 million to cover legal expenses.

Citigroup announced it's adjusting its third quarter results downward as it sets aside an additional $600 million to cover legal expenses. Citi initially reported legal and related expenses of $951 million for the third quarter. Citigroup said in a statement, 'The increase resulted from rapidly-evolving regulatory inquiries and investigations, including very recent communications with certain regulatory agencies related to previously-disclosed matters.' Its third quarter net income will be lowered from $3.4 billion to $2.8 billion. Morningstar senior analyst Jim Sinegal said in a note, 'These costs, in addition to creating uncertainty around the timing of interest rate changes, limit our near-term enthusiasm for the bank.'

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