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, World

U.S. to leave more troops in Afghanistan than first planned

afghanistan

The number of troops in Afghanistan next year will be larger than originally thought to fill a gap left in the NATO mission.

in Black Friday, National

Macy’s opening even earlier this Thanksgiving

macys

Dinner will be cut short: The department store chain will open at 6 p.m., two hours earlier than last year.

in Sports, Viral Videos

Dude Perfect: Seattle Seahawks edition

11-overlay4

Super Bowl QB Russell Wilson hits insane targets, draws a Seahawk, sings "Sweet Home Alabama" and more!

in Black Friday, National

PHOTOS: Turkeys who got a presidential pardon

stars

Ever wonder what happened to those turkeys that got a Thanksgiving reprieve from the President?

in National

Storm may snarl trip for Thanksgiving travelers

travel

A nor'easter headed up the East Coast could cause havoc for millions of Thanksgiving travelers.