Citigroup to Pay Record Fine in $7-billion Mortgage Settlement

Citigroup to pay $7 billion in fines and relief over claims it misled investors about mortgage securities
Citigroup to Pay Record Fine in $7-billion Mortgage Settlement

Image Credits: 62697772@N02, Flickr.

by Jim Puzzanghera & E. Scott Reckard | | July 14, 2014

Citigroup Inc. will provide $7 billion in cash and consumer relief to settle federal and state investigations into the sale of defective mortgage investments during the subprime housing boom, the Wall Street giant and federal officials said Monday.

California is among several states that will share in the settlement, which includes a record $4 billion in civil fines and $500 million in repayments for public pension fund and other losses, plus $2.5 billion in consumer relief.

Citi will pay California $102.7 million to offset losses in its public pension funds, according to Atty. Gen. Kamala Harris’ office. California also is guaranteed at least $90 million in consumer relief, the most of any state.

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