Citigroup to pay $8.7b to settle securities investigation

BANGALORE (REUTERS) - Citigroup Inc said it agreed to pay US$7 billion (S$8.7 billion) to settle a US government investigation into mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis.

Citigroup said on Monday it would pay a total of US$4.5 billion in cash and provide US$2.5 billion in consumer relief.

The bank said it would take a related pre-tax charge of about US$3.8 billion in the second quarter.

The settlement figure was more that twice what many analysts expected earlier this year but less than the US$12 billion the government had sought in negotiations with the bank.

Join ST's Telegram channel and get the latest breaking news delivered to you.