News

Citi to pay $7B to settle federal investigation

Citi to pay $7B to settle federal investigation

CITI:Citigroup said on Monday it would pay a total of $4.5 billion in cash and provide $2.5 billion in consumer relief. Photo: Reuters

(Reuters) – Citigroup Inc said it agreed to pay $7 billion to settle a U.S. government investigation into mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis.

Citigroup said on Monday it would pay a total of $4.5 billion in cash and provide $2.5 billion in consumer relief.

The bank said it would take a related pre-tax charge of about $3.8 billion in the second quarter.

The settlement figure was more that twice what many analysts expected earlier this year but less than the $12 billion the government had sought in negotiations with the bank.

(Reporting by Anil D’Silva in Bangalore; Editing by Saumyadeb Chakrabarty)

Recent Headlines

in Local

Davis: Super Bowl Sunday = Human Trafficking

Fresh
davis

Unforgettable story from a survivor

in Local

Redfield: Local Right-to-Work Zone Sounds New

Fresh
labor day parade

Could be diversion from Rauner's real remedy, professor suggests

in Local

Rauner to UI: Cut Bloat, Then I’ll Help

university illinois

State of the State preview hits Champaign

in Local

Manar, Scherer Introduce High Speed Rail Legislation

High-speed rail confrence (2)

A couple of local lawmakers are trying to put some teeth into a high speed rail agreement that will benefit Springfield minority communities.

in Local

Springfield Metro Unemployment Level Lowest Since 2007

unemployment

The Springfield metro area has recorded another drop in unemployment.