Date
19 October 2017
Citigroup is expected to announce a US$7 billion settlement with US investigators over mortgage-backed securities. Photo: Bloomberg
Citigroup is expected to announce a US$7 billion settlement with US investigators over mortgage-backed securities. Photo: Bloomberg

Citi tipped to make US$7 bln payout to US govt

An announcement is expected Monday of a US$7 billion settlement between Citigroup and US government investigators over the repackaging and sale of toxic home loan products in the run-up to the 2008 financial crisis, Reuters reported Monday.

The settlement comprises US$4 billion in cash to the US Department of Justice, US$2.5 billion in consumer relief, more than US$200 million to the Federal Deposit Insurance Corp and just under US$300 million to settle investigations by five states, the report said.

The deal is scheduled to be announced on Monday morning when Citigroup executives also will report second-quarter results before the stock market opens in New York, the report quoted unnamed sources as saying.

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