Legal News

Citigroup Announces Settlement with U.S. Government
Download PDF

citigroup

It was announced on Monday that Citigroup Inc has agreed to pay $7 billion to settle the United States investigation into mortgage-backed securities, according to a report from Reuters.

The mortgage-backed securities were sold in the run-up to the financial crisis of 2008. The $7 billion settlement is much more than experts had expected the bank to pay, but it is markedly less than the $12 billion the government requested in negotiations with Citigroup.

  
What
Where


The bank said that it is going to pay $2.5 billion in consumer relief and $4.5 billion in cash. Citigroup also said that it is going to take a pre-tax charge of $3.8 billion in the second quarter.

Since President Barack Obama created a task force to investigate the sale of toxic home loans, this is the second bank to settle with the government.

“The penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi,” U.S. Attorney General Eric Holder said in a statement on Monday.

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!!




“Despite the fact that Citigroup learned of serious and widespread defects among the increasingly risky loans they were securitizing, the bank and its employees concealed these defects,” Holder said.

Within the $4.5 billion cash portion of the settlement, $4 billion will be a civil payment to the Justice Department and $500 million will be compensation payments to the Federal Deposit Insurance Corp. and state attorney generals.



Check out the latest Citi jobs available in Citigroup across the US.



 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Attorney with 3-7 years of litigation experience

USA-IL-Chicago

Chicago office of our client seeks attorney with 3-7 years of litigation experience. The candidate s...

Apply Now

Defense Attorney with 3-4 years of litigation experience

USA-CA-San Francisco

San Francisco office of our client seeks defense attorney with 3-4 years of solid litigation experie...

Apply Now

Mid-level IP Litigation Attorney with electrical engineering experience

USA-CA-San Francisco

San Francisco office of our client seeks mid-level intellectual property attorney with 3-5 years of ...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

Attorney - Personal Injury

USA-NY-Great Neck

A well-known prestigious plaintiff’s personal injury law firm is seeking an organized, smart, ...

Apply now

Southern Poverty Law Center’s Southeast Immigrant Freedom Initiative (SIFI)

USA-GA-Atlanta

Overview: The Southeast Immigrant Freedom Initiative (SIFI) provides high-quality, holistic pro b...

Apply now

Researcher / Policy Analyst - Children's Rights

USA-AL-Montgomery

Overview: This position could be located in one of several SPLC offices, depending on personal ci...

Apply now

Attorney NJ/NY

USA-NY-New York City

A premier plaintiff\'s personal injury law firm seeks a high-energy Associate experienced in litigat...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top