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Thursday, 10 July 2014

CITIGROUP CLOSE TO SETTLING FRAUD CLAIMS OF MORTGAGE SECURITIES


Citigroup is close to paying about $7bn to resolve a U.S. probe into whether it defrauded investors on billions of dollars worth of mortgage securities in the run-up to the financial crisis, a source familiar with the matter said on Tuesday.
An announcement of the settlement between the bank and the U.S. Department of Justice could come as early as next week, the source said.
A settlement of around $7bn for Citigroup would be higher than analysts had expected based on the bank's mortgage securities business.
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