Citigroup to pay $7B in subprime mortgages probe
World BusinessJul 14, 2014
Citigroup will pay $7 billion to settle an investigation into risky subprime mortgages, the type that helped fuel the financial crisis. The agreement announced Monday comes weeks after talks between the sides broke down, prompting the government to warn that it would sue the New York investment bank. The bank had offered to pay less than $4 billion, a sum substantially less than what the Justice Department was asking for. The settlement stems from the sale of securities made up of subprime mortg