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

SJC Ruling Ends Greenfield Sex Offender Residency Bid

greenfieldtownhall

Greenfield's efforts to pass a new sex offender residency bylaw are over before they had a chance to get started

in Local

UMass Gang Rape Defendant To Take Stand

gavel

Adam Liccardi is expected to testify on this final day of evidence before the jury gets the case

in Local

21-Year-Old Man Fatally Stabbed In Springfield

police lights

David Steven Guasp of Springfield is the city's 14th homicide of the year

in Local

Whately Firefighters Support Group Turns 75

fire-chief

The group most recently donated cash toward a project to upgrade the Whateley Elementary School playground

in Local

Amherst Group Pushes For Town Government Changes

Amherst Town Hall

Amherst For All is looking to create a charter commission which they hope leads to a town government that's more responsive to residents' needs