Citigroup Inc. disclosed that it could face up to $4 billion in losses from various lawsuits beyond what it has already set aside in reserve for such losses.
The disclosure in Citi's annual report with the Securities and Exchange Commission is a new requirement by the agency, which demands that companies tell investors what their losses from litigation could be in a worst-case scenario. Companies set a litigation reserve based on what they consider reasonable possible losses.
Bank of America Corp., the nation's largest bank, said its worst-case scenario exceeds what it has already set aside as legal reserves by $1.5 billion; Wells Fargo & Co.'s estimate is $1.2 billion. Neither bank disclosed the range of possible litigation losses or what they consider a best-case loss scenario.
Meanwhile, Citi said 55 of 260 trading days last year were unprofitable. On one day, its trading loss was greater than $100 million.