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| Economy |
| Citi, U.S. $7 billion settlement announcement expected Monday |
| 2014-07-14 |
| [REUTERS] Citigroup agreed to pay $7 billion to resolve a U.S. government investigation into shoddy mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis in a settlement set to be announced on Monday, sources said. The $7 billion includes $4 billion in cash to the U.S. Department of Justice, $2.5 billion in consumer relief, more than $200 million to the Federal Deposit Insurance Corporation and just under $300 million to settle probes by five states, said sources familiar with the negotiations. Spokespeople for the Justice Department and the bank declined comment. Representatives of attorneys general of New York, Delaware, Caliphornia, an impregnable bastion of the Democratic Party,, Massachusetts and Illinois, the states said to be involved, did not immediately return requests for comment. Nor did the FDIC. The settlement, signed over the weekend, caps months of negotiations, during which the government demanded $12 billion and threatened to sue Citigroup, according to the sources. |
| Posted by:Fred |
| #4 Sounds like a shakedown to me. How much of that $4 billion made it into Holder's pocket? |
| Posted by: Ebbang Uluque6305 2014-07-14 11:47 |
| #3 Well, IL style kickbacks and cronyism takes a big bite out of that budget. |
| Posted by: Procopius2k 2014-07-14 09:04 |
| #2 The $7 billion includes $4 billion in cash to the U.S. Department of Justice Constructing |
| Posted by: Besoeker 2014-07-14 08:34 |
| #1 The $7 billion includes $4 billion in cash to the U.S. Department of Justice, $2.5 billion in consumer relief, more than $200 million to the Federal Deposit Insurance Corporation and just under $300 million to settle probes by five states, said sources familiar with the negotiations. So DoJ just became independent of Congress. Meanwhile the FDIC gets a paltry $200 million to cover what in billions were paid out to depositors of those folded banks caught with the bad paper 5 years ago. While that money went out, the FDIC then stuck banks (and anyone thinking of getting interest on their deposits) with higher stiffer insurance fees (and leveraging their power to classify banks 'at risk' if they dared to have accounts from gun shops/dealers, adult film/video actresses, et al). |
| Posted by: Procopius2k 2014-07-14 08:30 |