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Citigroup unsure about housing market
Citigroup isn't as enthusiastic as its peers about a comeback in the housing market.
From Phoenix, KJZZ's Steve Goldstein has more.
Last week, executives at Wells Fargo and JPMorgan Chase declared that the long-struggling market had turned a corner. But on Monday, Citigroup's Chief Financial Officer John Gerspach said he wasn't sure. In a conference call, Gerspach cautioned that recent history is littered with upturns in the housing market that didn't pan out. He said that despite a few signs of stabilization in the housing market, there are, in his words, "still some rather significant challenges to be faced." Citigroup also reported that it had to set aside more money in case it has to buy back more mortgages from investors who bought them in the run-up to the financial crisis, and now feel ripped off.