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)

Local Headlines

in Local

Rose Receives Medals

king

A man who served in World War 2 was honored and given medals...

in Local

Gold Star at CCF

ccf1240

The Clay County Fair announces their midway emtertainment...

in Local

Unemployment Overpayment

iowaflag

Iowa's workforce agency provided unemployment benefits earlier this year to people who didn't seek them...

in Local

Lyon County 2nd Fish Kill

dnr1240

The state Department of Natural Resources says it's investigating another fish kill...

in Local

Japan Conference

Newbranreynolds

Governors from throughout the Midwest will join next month with officials from Japan...