Marketplace   Menu Guide   Complete Pages      
butler eagle
Site last updated: Wednesday, July 23, 2014 Bookmark our site!
Local PennsylvaniaNationalInternationalNews Extras  
Published: July 13, 2014 print this article Print save this article Save email this article Email ENLARGE TEXT increase font decrease font

Citigroup to pay $7B to settle subprime mortgages case



WASHINGTON — Citigroup will pay $7 billion to settle an investigation into risky subprime mortgages, the type that helped fuel the financial crisis.
The agreement announced this morning comes weeks after talks between the sides broke down, prompting the government to warn that it would sue the New York investment bank. The bank had offered to pay less than $4 billion, a sum substantially less than what the Justice Department was asking for.
The settlement stems from the sale of securities made up of subprime mortgages, which fueled both the housing boom and bust that triggered the Great Recession at the end of 2007.
Citigroup and other banks downplayed the risks of subprime mortgages when packaging and selling them to mutual funds, investment trusts, pensions, as well as other banks and investors.





Back
Comments
Order Photos!
 
MORE NEWS HEADLINES
arrow SEC votes to end $1 a share for some money funds
arrow Alameda Pool work to cost $1.1 million
arrow Truck hits pole, downs wires
arrow Cantor avoids unrest in trip to Mideast
 
MOST READ ARTICLES
arrow Moniteau hires husband, wife as principals
arrow Crash downs utility wires on Center Avenue
arrow Parents group not pleased
arrow Police Reports