Citi today released the following statement on the agreement in
principle reached with the Office of the Comptroller of the Currency
(OCC) and the Federal Reserve Board regarding the Independent
Foreclosure Review process.
“We are pleased to have the matter resolved and believe this agreement
is a positive development that will provide benefits for homeowners.”
Citi expects to record a pre-tax charge of approximately $305 million in
the fourth quarter of 2012 for its cash payment portion of the
settlement. In addition, Citi expects its approximately $500 million
share of the loss mitigation or other foreclosure prevention actions in
connection with the agreement will be covered by existing loan loss
reserves and thus there will be no incremental financial impact to Citi.
Citi will issue its fourth quarter results on Thursday, January 17, 2013.
Citi, the leading global bank, has approximately 200 million customer
accounts and does business in more than 160 countries and jurisdictions.
Citi provides consumers, corporations, governments and institutions with
a broad range of financial products and services, including consumer
banking and credit, corporate and investment banking, securities
brokerage, transaction services, and wealth management.
Certain statements in this document, including the expected financial
impact to Citi resulting from the agreement in principle, are
"forward-looking statements" within the meaning of the rules and
regulations of the U.S. Securities and Exchange Commission. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Actual results may
differ materially from those expressed in or implied by these statements
due to a variety of factors, including but not limited to the completion
of the final analysis of the financial impact to Citi as well as the
successful execution of the agreement in principle. More information
about these and other factors is contained in Citi's filings with the
U.S. Securities and Exchange Commission, including without limitation
the "Risk Factors" section of Citi's 2011 Annual Report on Form 10-K.
Precautionary statements included in such filings should be read in
conjunction with this document. Any forward-looking statements made by
or on behalf of Citi speak only as to the date they are made, and Citi
does not undertake to update forward-looking statements to reflect the
impact of circumstances or events that arise after the date the
forward-looking statements were made.
Additional information may be found at http://www.citigroup.com
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