Citigroup today reported a better-than-expected $2.2 billion profit, sharply higher than the $101 million it earned in the third quarter last year. Citigroup a big lift by reversing a $2 billion pool of money set aside for bad loans. Revenue in Citigroup’s core banking businesses rose 7%, excluding some items. Citigroup shares are about 4.2% higher today.
On the conference call with analysts, Citigroup also addressed worries about problems with home foreclosures, which have made investors fret about the banking industry. In short, Citigroup appeared fairly sanguine about regulatory scrutiny and about the possibility of investors forcing the bank to buy back mortgage-backed securities.
Here are highlights from Citi’s discussion about home loans and other items, according to the transcript from Thomson Reuters.
Citigroup finance chief John C. Gerspach on the foreclosure controversy, including any of the bank’s findings on “robo signers,” people who signed reams of foreclosure documents, sometimes without reviewing the underlying mortgage documents:
Regarding foreclosures, as we have been saying publicly, we continuously review our document handling procedures, and we believe the integrity of Citi’s foreclosure process is sound. While we use external attorneys to prepare documents, each package is reviewed by a Citi employee who verifies the information and signs the foreclosure affidavit in the presence of a notary….We have intensified our ongoing process reviews and on that basis have not identified any systemic issues.
Read on.
Citigroup seems to forgot David J. Stern law firm, the law firm that Citigroup used for foreclosure documents and the same law firm whose robo-signer Kelly Scott signed off on foreclosure documents without verifying them.
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