Bloomberg reports that Citigroup’s $5bn estimate of potential legal costs that weren’t covered by reserves at midyear is second only to JPMorgan, Charles Peabody of Portales said last week in a Bloomberg Radio interview. That shows Citigroup may be bracing for more legal challenges, Peabody said.
'It’s very conceivable that Citigroup will be next in the firing line', Peabody said. 'Their litigation costs have been accelerating faster than anyone else’s'.
U.S. Attorney General Eric Holder said earlier this month that announcements about banks other than JPMorgan would be made in the coming weeks and months. Citigroup Chief Executive Officer Michael Corbat has seen litigation costs climb to $1.44bn in the first half of 2013, putting this year on track to be the most expensive for such costs since the financial crisis, according to data compiled by Bloomberg.
Citigroup’s litigation costs totalled $8.1bn from 2008 through the end of June, according to data compiled by Bloomberg.
That compares with $21.3bn at JPMorgan and $19.1bn at Bank of America. Wells Fargo’s totalled $2.7bn.
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