Citigroup Inc. (C) is poised to be the next U.S. bank to attract legal and regulatory scrutiny asJPMorgan Chase & Co. (JPM) looks to settle a host of probes, according to an analyst at Portales Partners LLC.
Citigroup’s $5 billion estimate of potential legal costs that weren’t covered by reserves at midyear is second only to JPMorgan, Charles Peabody of Portales said yesterday in a Bloomberg Radio interview. That shows Citigroup may be bracing for more legal challenges, Peabody said.
“It’s very conceivable that Citigroup will be next in the firing line,” Peabody said. “Their litigation costs have been accelerating faster than anyone else’s.” Citigroup is the third-largest U.S. bank by assets and JPMorgan is ranked first. Both are based in New York.