Citigroup pays $7 billion in sub-prime mortgage fines
Citigroup has agreed to pay $7 billion in Fines and compensation for the selling of sub-prime mortgage securities.
President Obama launched an investigation into housing loans in the wake of the financial crisis, with lenders alleged to have misrepresented the quality of bonds backed by sub-prime mortgages. Last year, JPMorgan agreed to pay $13 billion. Now, Citigroup has followed suit with a payment of $4 billion to the Department of Justice and a further $2.5 billion for "consumer relief".
“The bank’s misconduct was egregious,” U.S. Attorney General Eric Holder told the presst. “The size and scope of this resolution goes beyond what could be considered the mere cost of doing business.”
The company's share price rose soon after the announcement.