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 National

Bet you didn’t know: Fun facts about the Fourth

13-overlay

Even the most patriotic among us can learn something from these little-known facts about Independence Day.

in National

Stronger economy, cheap gas means more people on the road

gasprices

More than 40 million Americans are expected to hit the road for the long holiday weekend.

in Lifestyle, National

5 ways to save money on your summer road trip

roadtrip

While a domestic road trip might appear like an affordable alternative to traveling abroad, costs can easily spiral out of control.

in National

Campaign highlights stress of fireworks on combat veterans

fireworks

For hundreds of thousands of veterans with post-traumatic stress disorder, symptoms can be worsened by the cracks and thunder of celebratory fireworks.

in National

Are airlines colluding to keep fares high?

airlines

The U.S. Department of Justice is investigating whether airlines worked together illegally to keep airfares high by signaling plans to limit flights.