New York: Citigroup approved to pay $7 billion to resolve a
U.S. government examination into shoddy mortgage-backed securities the bank
sold in the run-up to the 2008 monetary emergency in a decision set to be
announced on Monday, sources said.
The $7 billion includes $4 billion in cash to the U.S. section of Justice, $2.5 billion in customer respite more than $200 million to the central set down indemnity company and just under $300 million to settle probes by five states, said sources recognizable with the discussions.
Spokespeople for the fairness section and the bank declined mention legislature of attorneys universal of New York, Delaware, California, Massachusetts and Illinois, the states said to be concerned, did not instantly return needs for statement. Nor did the FDIC.
The agreement, signed over the weekend, caps months of debate, during which the direction demanded $12 billion and in danger to sue Citigroup, according to the sources.
The deal is planned to be announced on Monday morning when Citigroup executives also will statement second-quarter fallout before the stock market opens in New York, the sources said.
The $7 billion has staggered stock analysts and people inside the bank, who probable Citigroup to resolve the investigations for much less.
The $7 billion includes $4 billion in cash to the U.S. section of Justice, $2.5 billion in customer respite more than $200 million to the central set down indemnity company and just under $300 million to settle probes by five states, said sources recognizable with the discussions.
Spokespeople for the fairness section and the bank declined mention legislature of attorneys universal of New York, Delaware, California, Massachusetts and Illinois, the states said to be concerned, did not instantly return needs for statement. Nor did the FDIC.
The agreement, signed over the weekend, caps months of debate, during which the direction demanded $12 billion and in danger to sue Citigroup, according to the sources.
The deal is planned to be announced on Monday morning when Citigroup executives also will statement second-quarter fallout before the stock market opens in New York, the sources said.
The $7 billion has staggered stock analysts and people inside the bank, who probable Citigroup to resolve the investigations for much less.