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Citigroup to pay $7 billion to settle subprime mortgage investigation
Citigroup to pay $7 billion to settle subprime mortgage investigation

Citigroup Inc., the third-largest U.S. bank by assets, agreed to pay $7 billion in fines and consumer relief to resolve government claims that it misled investors about the quality of mortgage-backed bonds sold before the 2008 financial crisis. The bank, which is scheduled to report results today before U.S. markets open, will take a $3.8 billion pretax charge in the second quarter to cover the cost of the settlement, the New York-based firm said today in a statement. The accord covers securities issued, structured and underwritten between 2003 and 2008, according to Citigroup. The settlement includes a $4 billion civil penalty, the largest of its kind, according to the Department of...

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