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Article updated: 1/18/2013 6:52 AM

Legal expenses drag down Citigroup 4Q earnings

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Citigroup's fourth quarter earnings fell short of Wall Street's expectations as the bank's legal expenses rose and it released less money from its loan-loss reserves.

Associated Press

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Citigroup's fourth quarter earnings fell short of Wall Street's expectations as the bank's legal expenses rose and it released less money from its loan-loss reserves. The bank, based in New York, said a big chunk of the legal expenses came from a settlement reached last week over illegal foreclosure practices in the aftermath of the housing bust. It was Citigroup's first quarter under the leadership of CEO Michael Corbat, who took the helm after former CEO Vikram Pandit resigned abruptly in October.