Free Market Evaluation - Send us your resume and we will give you free feedback
MillerCoors Sued for False Advertising
MillerCoors Sued for False Advertising
Worst Place to Start a Business: Newark, New Jersey
Worst Place to Start a Business: Newark, New Jersey
Popeyes Shift Manager Fired for Allowing Gunman to Take $400
Popeyes Shift Manager Fired for Allowing Gunman to Take $400
Uber Sued for Refusing to Taxi Guide Dogs of the Blind
Uber Sued for Refusing to Taxi Guide Dogs of the Blind
Legal Job Listings
Download PDF

Citigroup Close to Settling U.S. Investigation View Count: 365

citigroup

In order to resolve a probe by the United States government, Citigroup Inc is close to paying $7 billion, according to Reuters. The investigation started on allegations that the bank defrauded investors of billions of dollars worth of mortgage securities as the financial crisis was on the horizon.

Almost all of the settlement will be paid in cash, but the amount includes several billion dollars in help to borrowers who are struggling right now.

A source close to the situation told Reuters that an announcement of the settlement is expected to be made next week. Wall Street analysts did not expect Citigroup to pay such a large settlement in this probe. The bank was thought to have $3 billion in reserves for a related settlement. Just last month, the U.S. Justice Department asked for $10 billion.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Talks between the Justice Department and Citigroup stalled last month when both sides were far apart on a settlement number. As talks stalled, the Justice Department began to prepare a lawsuit against Citigroup.

Offices for the United States Attorney in Colorado and Brooklyn had been investigating the bank as a larger probe into mortgage securities that were faulty and helped fuel the housing bubble in the mid-2000s.

In November, JPMorgan Chase & Co paid $13 billion to resolve multiple probes.

Citigroup Close to Settling U.S. Investigation by

Tagged: , ,

Posted by on July 10, 2014. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Legal Assistant in Western Chicago Suburbs
USA-IL-Naperville
Boutique law firm in western Chicago Suburbs seeks a legal assistant with a strong desire to practice in the areas of probate, trust administration, estate planning, and elder law. ...


Apply now

Related Posts: