Citigroup Agrees to $7 Billion Settlement

Published 07/14 2014 04:22PM

Updated 07/14 2014 04:24PM

Citigroup agrees to pay $7 billion to settle charges of packaging bad mortgages during the run-up to financial crisis.

The deal includes $4 billion in penalties: $2.5 billion in mortgage modifications and other relief to homeowners, and $500 million going to several states and the federal deposit insurance corp.

The settlement helps Citigroup avert a civil suit by the justice department. This mirrors similar settlement agreements made by JP Morgan Chase and other lenders in recent years.

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