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Citigroup Agrees To Settlement Over Risky Mortgages

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Citigroup Agrees To Settlement Over Risky Mortgages

Business

Citigroup Agrees To Settlement Over Risky Mortgages

Citigroup Agrees To Settlement Over Risky Mortgages

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  • <iframe src="https://www.npr.org/player/embed/331321985/331328966" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
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Citigroup will pay $4 billion to the Justice Department and spend $2.5 billion to help struggling homeowners modify their mortgages. And, talks are underway between the government and Bank of America.

RENEE MONTAGNE, HOST:

NPR's Business News begins with a 7 billion-dollar payout by Citigroup. The government says the giant bank misled investors about certain subprime mortgages before the financial meltdown. The Justice Department and Citigroup reached the settlement after two and a half months of tense negotiations. Citigroup will pay $4 billion to the Justice Department and spend $2.5 billion to help struggling homeowners modify their mortgages. Citigroup is the second big bank to reach a settlement over mortgage-based securities. JPMorgan Chase agreed to pay $13 billion last November, and talks are underway between the government and Bank of America.

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