Citigroup to pay $7 billion to settle US mortgage suits
NEW YORK: Citigroup said on Monday that it will pay $7 billion to settle allegations that it misled investors in its sale of mortgage-linked securities ahead of the financial crisis.
Citi said the settlement with the US department of justice and other government bodies resolves "substantially all" of its litigation on mortgages through 2008. The bank will take a $3.8 billion pre-tax charge to cover the settlement.
The huge charge dragged Citi's second-quarter earnings down 96 per cent to $181 million, the bank said.
NEW YORK: Citigroup said on Monday that it will pay $7 billion to settle allegations that it misled investors in its sale of mortgage-linked securities ahead of the financial crisis.
Citi said the settlement with the US department of justice and other government bodies resolves "substantially all" of its litigation on mortgages through 2008. The bank will take a $3.8 billion pre-tax charge to cover the settlement.
The huge charge dragged Citi's second-quarter earnings down 96 per cent to $181 million, the bank said.
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