NEW YORK: Citigroup Inc plans to dip into funds that it set aside against bad mortgages in its Citi Holdings unit "sooner rather than later," Chief Financial Officer John Gerspach said, in a move that should reduce the unit's drag on profits.
Citi Holdings houses mortgages and other businesses that the third-largest U.S. bank is winding down after they produced huge losses during the financial crisis. The bank set aside money to cover losses from the loans, and releasing those reserves would help offset other losses in the unit. Citi Holdings lost $3.7 billion in 2012.