News Summary: Citigroup 4Q earns miss expectations
News Summary: Citigroup earnings miss Wall Street expectations in 4Q on higher legal expenses
UP, BUT WEAK: Citigroup's fourth quarter earnings rose in the fourth quarter, but fell short of Wall Street's expectations. Citi earned $1.16 billion after paying preferred dividends, or 38 cents per share, in the three months ended Dec. 31. That compares with $933 million, or 31 cents per share, in the same period a year earlier.
LEGAL BILLS: Part of the reason for Citi's weakness was an increase in legal and related expenses, which reached $1.3 billion in the quarter. Much of that was due to a settlement with federal regulators announced last week in connection with Citigroup's foreclosure practices.
NEW LEADERSHIP: It was Citigroup's first quarter under the leadership of CEO Michael Corbat, who took the helm after Vikram Pandit resigned abruptly in October.
