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Citigroup may pay $8.7b to resolve US mortgage probes: source

Published on Jul 9, 2014 10:14 AM
 
A man walks by a Citibank branch at the US bank Citigroup world headquarters on Park Avenue, in New York, in this Nov 17, 2008 file photo. 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. -- PHOTO: AFP

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.

 
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