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

1 day ago in National

Making headlines this week

sb50

A look back at some of the biggest stories this week and the headlines you may have missed.

2 days ago in Local

UMass Rape Trial Goes To Jury

Patrick Durocher

Deliberations began Thursday in Durocher’s alleged 2013 rape of a female classmate outside the UMass Campus Center

2 days ago in Local

UMass Investigates Alleged Employee Wrongdoing

umass

University officials say the violations include misreporting of hours and misuse of campus resources

2 days ago in Local

Northampton Council Urges Lift On Net-Metering Cap

solar panels

The Northampton City Council has passed a resolution urging the state to lift the cap on net-metering

2 days ago in Local

Snowy Friday Commute In The Pioneer Valley

snowstormpic copy

A Winter Weather Advisory has been issued for Hampden, Hampshire and Franklin Counties through 1pm