Citigroup still counting credit crisis cost

Stephen Foley

Stephen Foley is a former Associate Business Editor of The Independent, based in New York. He left in August 2012. In a decade at the paper, he covered personal finance, the UK stock market and the pharmaceuticals industry, and had also been the Business section's share tipster. Between arriving with three suitcases in Manhattan in January 2006 and his departure, he witnessed and reported on a great economic boom turning spectacularly to bust. In March 2009, he was named Business and Finance Journalist of the Year at the British Press Awards.

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The legacy of the credit crisis continues to weigh on Citigroup, the US banking giant's latest quarterly results showed.

Profits fell 12 per cent to $2.95bn (£1.88bn) because of widening losses on the portfolio of crisis-era assets. The remainder of the business, which includes one of the largest mortgage-lending and high street banking operations in the US, beat analysts' expectations.

Citigroup is also one of three US banks that submit estimates of its borrowing costs for the calculation of Libor, and it is under investigation in several jurisdictions around the world over allegations of rate-rigging.

Vikram Pandit, the chief executive, was questioned by analysts on whether investors should brace for legal settlements similar to the £290m in fines paid last month by Barclays.

He said: "We have receive requests for information and we are fully co-operating. Do not infer from the situation of one Libor-submitting bank that all banks are the same."

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