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

U.S. Secret Service directior resigns

The White House seen from outside the north lawn fence in Washington

Julia Pierson has resigned amid security lapses at the White House.

in National

Rhode Island child with Enterovirus dies

cdc

A child hospitalized for less than 24 hours with Enterovirus D68 has died from the bacterial infection.

in National

U.S. experts hunt for Ebola exposure after first case

cdc

Experts are monitoring "a handful" of people potentially exposed through physical contact with the first patient diagnosed with the deadly virus in the U.S.

in Local

Vermont Yankee Closing Could Cost $1-Billion

VT Yankee

We should know by the end of October how much it will cost to close the Vermont Yankee Nuclear Power Plant

in Local

UMass Police Suspend Confidential Informant Program

UMass Amherst

UMass campus police have suspended their confidential informant program after last week's "Boston Globe" article about a student who died of an overdose last year