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


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.

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Comments (4)
  • themayor
    , contributor
    Comments (51) | Send Message
     
    Only in America.
    14 Jul 2014, 07:50 PM Reply Like
  • JD in NJ
    , contributor
    Comments (1634) | Send Message
     
    In China they would have executed a few people and been done with it.
    15 Jul 2014, 08:21 AM Reply Like
  • Jason B
    , contributor
    Comments (532) | Send Message
     
    Yes...only in America is the government so actively hostile toward it's own countries businesses that is makes up charges to milk them to enrich their own coffers- twice. Only in America does the government handicap their own industries in the global marketplace. Only in America could these criminals keep getting elected.
    26 Jul 2014, 08:03 AM Reply Like
  • Tom Armistead
    , contributor
    Comments (6201) | Send Message
     
    Why shouldn't fines and restitution by deductible? After all, it's just a cost of doing business, the way these outfits look at it.
    14 Jul 2014, 08:23 PM Reply Like
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