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Citi, U.S. $7 billion settlement announcement expected Monday
[REUTERS] Citigroup agreed to pay $7 billion to resolve a U.S. government investigation into shoddy mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis in a settlement set to be announced on Monday, sources said.The $7 billion includes $4 billion in cash to the U.S. Department of Justice, $2.5 billion in consumer relief, more than $200 million to the Federal Deposit Insurance Corporation and just under $300 million to settle probes by five states, said sources familiar with the negotiations. Spokespeople for the Justice Department and the bank declined comment. Representatives of attorneys general of New York, Delaware, Caliphornia, an impregnable bastion of the Democratic Party,, Massachusetts and Illinois, the states said to be involved, did not immediately return requests for comment. Nor did the FDIC. The settlement, signed over the weekend, caps months of negotiations, during which the government demanded $12 billion and threatened to sue Citigroup, according to the sources. Posted by: Fred 2014-07-14 |
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