{"id":5646,"date":"2014-07-14T00:00:00","date_gmt":"2014-07-14T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/07\/citigroup_settles_mortgageback"},"modified":"2022-05-06T10:57:53","modified_gmt":"2022-05-06T15:57:53","slug":"citigroup-settles-mortgageback","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/citigroup-settles-mortgageback\/","title":{"rendered":"Citigroup Settles Mortgage-Backed Securities Probe with DOJ for $7 Billion"},"content":{"rendered":"

Citigroup (C) <\/a>has reached a $7 billion settlement with the U.S. Department of Justice over allegations it misled investors about mortgage-backed securities <\/a>in the time leading up to the 2008 financial meltdown. The settlement includes a $4 billion penalty to be paid to DOJ, $2.5 billion in consumer relief, and $500 million to a number of states and the Federal Deposit Insurance Group.<\/p>\n

According to the U.S. government, Citigroup knew it was selling mortgage-backed securities with loans that had \u201cmaterial defects\u201d and hid this information from investors. Attorney General Holder called this misconduct \u201cegregious.\u201d He said the bank played a role in spurring the economic crisis.<\/p>\n

The government released a statement of fact to which Citibank consented. In it are details about how the bank ignored its own warning signs that certain mortgages were subpar and made misrepresentations about the loans that were securitized. One U.S. attorney told The Wall Street Journal<\/em> that the DOJ discovered 45 mortgage-backed security deals between 2006 and 2007 where inaccuracies about underlying loans\u2019 and their quality were made.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Citigroup (C) has reached a $7 billion settlement with the U.S. Department of Justice over allegations it misled investors about mortgage-backed securities in the time leading up to the 2008 financial meltdown. The settlement includes a $4 billion penalty to be paid to DOJ, $2.5 billion in consumer relief, and $500 million to a number […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3820,3817,3752,3757],"tags":[],"class_list":["post-5646","post","type-post","status-publish","format-standard","hentry","category-citigroup","category-credit-suisse","category-financial-firms","category-mortgagebacked-securities"],"yoast_head":"\nCitigroup Settles Mortgage-Backed Securities Probe with DOJ for $7 Billion — Investor Lawyers Blog — July 14, 2014<\/title>\n<meta name=\"description\" content=\"Citigroup (C) has reached a $7 billion settlement with the U.S. Department of Justice over allegations it misled investors about mortgage-backed — July 14, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, 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