Of Citigroup's $7B settlement, CFO says ~$3B will be deductible

|About: Citigroup Inc. (C)|By:, SA News Editor

Citigroup (NYSE:C) will get a tax break on at least part of its $7B settlement with the U.S. government over its mortgage securities; CFO John Gerspach said during today's earnings call that the $500M in payments to state attorneys general and the FDIC would be deductible, along with any costs the bank actually incurs in relation to consumer relief, which could be less than the $2.5B called for in the settlement.

Tax deductibility of banks’ big settlements with the government has been controversial: Last fall, JPMorgan Chase reached a $13B settlement with the government over mortgage issues but with $7B of that amount deductible.