Citigroup is putting aside an additional $600m to cover legal expenses owing to rapidly evolving regulatory inquiries.
The lender has slashed its third quarter net income to $2.8bn from the originally reported $3.4bn as a result of the additional charge.
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The additional amount will likely be used by the lender to settle claims with UK’s Financial Conduct Authority by mid-November over allegations that it manipulated the foreign exchange market.
The six major banks accused in the foreign exchange manipulation, which includes Citigroup, are reportedly targeting to settle the claim for a total of about £1.5bn ($2.42 bn).
The $600m is in addition to the $951m in legal expenses previously reported, which was a rise from $677m in the year-ago period.
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