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

TSA vows to close security gaps at U.S. airports

tsa

The new leader of the Transportation Security Administration said his top priority would be to close security gaps after an internal report showed 96 percent of undercover tests failed.

in Local

Cosby Accuser Discredits His Claims of Reading Sexual Cues

Bill Cosby

A lawyer says her client Andrea Constand is gay and was dating a woman when Cosby made his advances

in Local

Florence Man Pleads Not Guilty to Setting House Fire

northampton fire truck

Peter Zygmont, of Northampton, pleaded not guilty Tuesday in Hampshire Superior Court to arson of a dwelling

in Local

Fugitive Turns Himself In After Charlemont Search

news-polic

A man wanted in a weekend hit-and-run on Cape Cod has turned himself in after a search in Charlemont

in Local

Northampton Rape Suspect’s Bail To Stay The Same

handcuffs

An accused Northampton rapist will remain in jail on ten-thousand dollars bail