By Tatiana Bautzer NEW YORK (Reuters) -Citigroup booked about $3.8 billion in combined charges and reserves that will erode its fourth-quarter earnings set .
Citigroup said it
will book about $3.8 billion in combined charges and reserve
builds when it reports fourth-quarter earnings on Friday,
according to a filing on Wednesday. The bank said.
U.S. banking giants are expected this week to report lower profits for the fourth quarter after they set money aside to cover souring loans while also paying more to depositors. The largest banks' net interest income (NII) - or the difference between what they earn on loans and pay out on deposits - probably fell on average 10% in the fourth quarter, Goldman Sachs analysts said. Banks' profits will likely be squeezed as they set aside more reserves in the fourth quarter to prepare for customers to default on the loans.
When Ted Pick takes over as the new CEO of Morgan Stanley next week, the three-decade bank veteran's frank manner and steady hand will help him steer the firm through a dealmaking slump. Pick's cool head in difficult situations is an asset, said Tom Glocer, Morgan Stanley's independent lead director since 2017 and former Reuters CEO. "The great sin that gets people into super trouble at banks is the trader's instinct to hold on (to losing positions). Ted has that ability to be disciplined" and take action, Glocer said.