Citigroup up next for DOJ on mortgage settlement

|About: Citigroup Inc. (C)|By:, SA News Editor

JPMorgan cut a deal for $13B late last year, Bank of America is reportedly in talks for a settlement figure greater than that, and now the WSJ reports Citigroup (C) and the DOJ are ready to sit down to begin negotiating how many billions that bank will have to part with over MBS created during the housing bubble.

Citigroup was a smaller player in mortgages than JPMorgan or BofA, and its mortgage-related settlements have tended to be smaller as well. Bernstein analysts estimate Citi issued $91B of private-label MBS between 2004 and 2008 vs. $965B at Bank of America (and Countrywide) and $450B at JPMorgan (and Bear Stearns and Wamu). Trying to put a ballpark number on a settlement figure, Bernstein's thinking about $5B.