Citigroup profits were brought down by close to 18 percent as a result of regulatory investigations into the bank’s alleged involvement in fixing foreign currency prices. This announcement follows Citigroup’s quarterly report two weeks ago. The company announced it would lower its third quarter profit by $600 million as a result of the investigations.
The increase resulted from rapidly-evolving regulatory inquiries and investigations, including very recent communications with certain regulatory agencies related to previously-disclosed matters,” the bank said in a statement.
Citigroup is one of a dozen major banks being investigated by British regulators. The bank, along with six others, is nearing a settlement which it hopes will be reached in November. Regulators in the US are expected to file their own case against the banks by the end of the year.
The currency investigation is not the only infraction suspected of the company. Citibank’s dealings with Mexican oil services company Oceanografia are also facing investigation. The company is suspected of perpetrating a fraud of $400 million dollars. The Mexican National Banking and Securities Commission levied a $2.2 million fine and issued “a corrective action” to reform bank policy. Citigroup shares fell 1.9 percent in after-hours trading as the company made its announcement Thursday after markets had closed. Citi shares dipped on Friday morning but regained its standing into the afternoon.
Read More – Investigation Causes Citigroup to Cut Profit (New York Times, Michael Corkery, Peter Evais, and Ben Protess)