Citigroup said today it would take $1.5 billion in charges in the fourth quarter to cover the costs of settling the massive conflict-of-interest inquiry into brokers and for increased credit losses.
Citigroup, the largest US financial services company, also said the charges would cover costs associated with regulatory inquiries into its relationship with collapsed energy trader Enron and related private litigation.
On Friday, the largest US brokerages agreed to pay $1.4 billion to settle charges that they had put their own interests ahead of investors by issuing tainted research and secretly handing out hot stocks to favoured clients.
