Citigroup Inc. (Citi) is a leading global financial services company with over 200 million customer accounts and

Question:

Citigroup Inc. (Citi) is a leading global financial services company with over 200 million customer accounts and operations in more than 140 countries. Its operating units Citicorp and Citi Holdings provide a broad range of financial products and services to consumers, governments, institutions, and corporations. Services include investment banking, consumer and corporate banking and credit, securities brokerage, and wealth management.

Required
Consider the following items reported in Citi’s Consolidated Statement of Income:
• Principal transactions
• Realized (gain) losses from sales of investments
• Provision for loan losses
• Restructuring
• Other operating expenses (which presumably includes the impairment)
• Discontinued operations
Discuss whether you would eliminate all or part of each item when assessing current profitability and forecasting the future earnings of Citi. If so, what adjustments would you make to the (assuming a tax rate of 35 percent)?

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