Citigroup Reduces Profit by $600M on Legal Costs

The company adjusted its Q3 2014 financial results due to a $600 million increase in legal accruals, stemming from regulatory inquiries. This adjustment reduced net income from $3.4 billion to $2.8 billion, causing a 1.5% drop in stock value after hours.

What was the reason for the company's adjustment of their third quarter 2014 financial results?

• An increase in production costs

• A $600 million increase in legal accruals

• A decrease in sales revenue

• A change in accounting policies

What led to the increase in legal accruals?

• Regulatory inquiries and investigations

• New product launches

• Employee layoffs

• Market expansion

How did the legal accruals affect the company's third quarter 2014 net income?

• It remained the same

• It increased from $3.0 billion to $3.5 billion

• It increased from $2.8 billion to $3.4 billion

• It decreased from $3.4 billion to $2.8 billion

What was the original third quarter 2014 net income before the adjustment?

• $3.0 billion

• $3.4 billion

• $3.6 billion

• $2.8 billion

What percentage did the stock fall after hours due to the financial impact?

• 2.5%

• 2%

• 1.5%

• 1%