Citigroup Down Amid News Of $3.5 Billion Charge

Citigroup Inc (NYSE: C) shares came under fire Tuesday amid reports that the company will take a $3.5 billion charge in the fourth quarter.

“The bank said it is incurring the charges for investigations and restructuring. Citigroup CEO Michael Corbat said the firm's fourth-quarter will be "marginally profitable" after the charges,” according to CNBC.

"We have made significant progress in simplifying and streamlining our company and these repositioning actions will further enhance our ability to serve our clients efficiently and focus on those areas with the greatest potential for returns," Corbat said. "Also, we believe these legal charges should cover a significant portion of our outstanding legal matters based on current information."

"The fourth-quarter legal costs compare with the $951 million reported by the New York-based bank in the third quarter and $402 million in the second, according to an October presentation. The third-quarter figure doesn’t include the $600 million charge reported on Oct. 3," according to Bloomberg.

Citigroup Inc recently traded at $54.89, down 2.63 percent.