WASHINGTON (MCT) — Citigroup Inc. said Monday it has agreed to pay $7 billion to settle Federal and State investigations into the sale of defective mortgage investments during the subprime housing boom.
California is among several States that will share in the settlement, one of the largest to come from probes into the role of Wall Street banks in helping trigger the 2008 financial crisis.
Citigroup, the nation’s third-largest bank by assets, said it would pay $4.5 billion in fines and $2.5 billion in consumer relief.
“We believe that this settlement is in the best interests of our shareholders, and allows us to move forward and to focus on the future, not the past,” said Citigroup Chief Executive Michael Corbat.
The consumer relief will come from principal reductions and other assistance for struggling borrowers as well as financing the bank will provide for building and preserving affordable rental housing, Citigroup said.
Los Angeles Times
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