Citigroup Inc. has so far managed to steer clear from the ongoing foreclosure mess that has ensnared other major U.S. banks. Rivals Bank of America Corp. and JPMorgan Chase & Co. have stopped most or all their foreclosures because of evidence that thousands of foreclosures were handled improperly. There are allegations that banks took shortcuts by having a few bank representatives "robo-sign" thousands of documents without reading them.
Citi says it hasn't found any problems in its foreclosure documentation process and has resisted calls by lawmakers and consumer advocates for an overall moratorium on foreclosures.
John Gerspach, Citi's chief financial officer, discussed the foreclosure issue in introductory remarks on a conference call Monday to discuss the earnings with investors:
"We continuously review our document handling procedures, and we believe the integrity of Citi's foreclosure process is sound. While we use external attorneys to prepare documents, each package is reviewed by a Citi employee who verifies the information and signs the foreclosure affidavit in the presence of a notary.
"When errors are found, the documents are returned to the attorney, who revises the package and resubmits the documents for review. We have intensified our ongoing process reviews and on that basis have not identified any systemic issues."