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 Sports

PHOTOS: Super Bowl Media Day 2015

Seattle Seahawks' Richard Sherman during media day for NFL Super Bowl XLIX football game Tuesday, Jan. 27, 2015, in Phoenix. (AP Photo/Matt York)

The Seattle Seahawks and the New England Patriots hit the floor for the NFL Super Bowl XLIX media day.

in Sports, Viral Videos

Marshawn Lynch doesn’t want to get fined

23-overlay5

The Seattle Seahawks running back has a goal for Media Day.

in Viral Videos

School announces snow day with ‘Let It Go’ parody

22-overlay5

Who needs robocalls when you can declare school closures through song?