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Citigroup and U.S. Agreement: $7 Billion


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Citigroup and U.S. Agreement: $7 Billion


A settlement agreement is expected to be announced on Monday in which Citigroup agrees to pay $7 billion for their role in the 2008 toxic home debacle. This is a far cry from the $12 billion position the government took earlier in the week. Of course, the bank had offered $363 million in April of this year.
  • $4 billion in cash to the U.S. Department of Justice
  • $2.5 billion in consumer relief
  • Approximately $200 million to the Federal Deposit Insurance Corporation
  • Approximately $300 million to settle probes by five states

Reuters is reporting:
Citigroup agreed to pay $7 billion to resolve a U.S. government investigation into shoddy mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis in a settlement set to be announced on Monday, sources said.​

JPMorgan Chase & Co , the largest U.S. bank, last year agreed to pay $13 billion to settle government probes. Bank of America has still not settled.