citigroup

Citigroup Inc.'s Chinese subsidiary is set to become the first U.S.-based bank to issue its own credit cards in China.

Citi shares fell more than 7 percent in the fourth quarter, and investors wasted little time in showing their disappointment.

The capital markets unit was especially weak.

The government is appealing a federal judge's ruling that struck down a $285 million civil fraud settlement with Citigroup.

Charles Peabody, an analyst at Portales Partners LLC, talks about the outlook for U.S. bank shares and his investment strategy.

Judge Jed Rakoff said the proposed $285 million settlement over the sale of toxic mortgage debt was “neither fair, nor adequate, nor in the public interest” and ordered a trial.

Amazon could have a smartphone on store shelves by the fourth quarter of next year according to Citigroup analyst Mark Mahaney.

“Based on our supply chain check, we believe FIH is now jointly developing the phone with Amazon,” Mahaney wrote in a research note.

The company agreed to settle a civil complaint by the S.E.C. that it had defrauded buyers in a $1 billion portfolio of mortgage-related investments.

Citigroup has agreed to pay $285 million to settle civil fraud charges that it misled buyers of complex mortgage investments just as the housing market was starting to collapse.

Three years after needing a federal bailout to survive, Citigroup reported its seventh-straight quarterly profit with a 74 percent rise in the third quarter despite dismal results of its investment bank.

Gainers

• SPDR S&P 500 (NYSE: SPY) up 2.62 percent to $118.74. The S&P, et al, are trading higher today on reports Europe will come to an agreement on recapitalization of banks by the end of October. Click here for more color.
• Financial Select Sector SPDR (NYSE: XLF) up 3.68 percent to $12.27.
  
  The much-beleaguered financial sector is one of the better performers Monday following news out of Europe.