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RECESSION PAYOUT

Citigroup Settles With U.S. for $7B

For its role in the financial crisis.

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Carlo Allegri/Reuters

The Justice Department doesn’t settle for chump change. Citigroup has agreed to settle an investigation into the bank’s conduct leading up to the financial crisis for $7 billion. The deal was made after Justice alleged that Citigroup packaged and sold mortgage securities that caused major losses for investors. The agreement includes a record $4 billion cash penalty that will go to the Justice Department, and $2.5 billion pledged to preserve affordable housing and other relief for struggling consumers. The payout went way beyond expectations—Citigroup first offered to settle the case in April for $363 million.

Read it at The New York Times

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