Thread: Citigroup Posts $2.2 Billion Profit for 3rd Quarter

Citigroup Posts $2.2 Billion Profit for 3rd Quarter

October 18, 2010, 8:16 am 8:35 a.m. | Updated The New York Times’s Eric Dash has more on Citigroup’s earnings.

Citigroup on Monday reported $2.2 billion in net income for its third quarter, marking its third straight quarter of earnings this year as the firm lowered reserves against potential losses.

The profit, built on $20.7 billion in revenue, amounts to 7 cents a share.

Citigroup said that its income from continuing operations, excluding an $800 million loss tied to the sale of its student lending business, was $2.6 billion, or 8 cents a share.
Citigroup said that it saw profit improvements in its retail banking business, especially in Latin America and North America, while its corporate operations declined. The firm has been busy selling off businesses it deems nonessential, including its student loan unit, the Student Loan Corporation.

“Achieving our third straight quarter of positive operating earnings is continued evidence that we are successfully executing our strategy and we believe we have put in place all the elements for continued profitability,â€

Buyout firm: Citigroup cheated in EMI auction

The Associated Press
NEW YORK -- A lawyer for a British private equity firm has told a jury at the start of a civil trial that the firm was tricked by New York bank Citigroup into paying billions of dollars for the struggling music company EMI in 2007.

Attorney David Boies said Citigroup falsely claimed to Terra Firma Capital Partners that there were other bidders for the record company when there were none. Boies made his opening statement on Monday.

Citigroup lawyer Theodore Wells countered that Terra Firma has its facts wrong. He says Citigroup never lied. He says Terra Firma just wants to blame the bank because its investment in EMI turned out to be a bad one.

Terra Firma wants Citigroup to pay damages related to the $4.9 billion takeover.

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