Citigroup may pay $8.7b to resolve US mortgage probes: source
Published on Jul 9, 2014 10:14 AM
NEW YORK/WASHINGTON (Reuters) - Citigroup is close to paying about US$7 billion (S$8.7 billion) to resolve a US 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.
A majority of the settlement is expected to be in cash, but the figure also includes several billion dollars in help to struggling borrowers, the source said.
An announcement of the settlement between the bank and the US Department of Justice could come as early as next week, the source said.
A Citigroup representative declined comment. A Justice Department spokeswoman did not respond to requests for comment.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!