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 Entertainment

Billboard suggests Sean ‘Diddy’ Combs in the line of fire for ‘Rush Hour 4′

puffdaddy

Is this a prank or is Puff Daddy replacing Chris Tucker in the fourth installment of the franchise?

in Sports

This weekend’s sports schedule

hawks

Here is a look at some of this weekend's biggest sporting events.

in Sports

This week’s top sports shots

AP935429472619_13

A look back on some of the best plays and biggest shots of the week.