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Big banks' $29bn cookie jar

Investors have little way of knowing what big banks have set aside for litigation expenses

It takes a lot to shock big-bank investors these days. When Citigroup announced last week that it would pay $590m to settle a class-action lawsuit related to its conduct early in the financial crisis, markets yawned.

Part of the reason may have been that the bank said the payment is covered by existing litigation reserves, meaning it won't impact profits in the current quarter.

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