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Citigroup up next for DOJ on mortgage settlement

  • 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.
Comments (12)
  • gussieboy
    , contributor
    Comments (26) | Send Message
     
    What will DOJ do when the banks are finished paying? Who will be the next victims? I wonder if they can sue the real culprits who got the banks in trouble by their edicts. You know the culprits, ie Barney Franks, Dodd and the others. They forced the banks into the whole mess.
    25 Apr, 08:43 PM Reply Like
  • JohnBinTN
    , contributor
    Comments (3622) | Send Message
     
    The banks will never be done "paying", in one way or another.
    25 Apr, 10:58 PM Reply Like
  • rheimerl
    , contributor
    Comments (346) | Send Message
     
    too bad the banks are afraid to defend themselves
    25 Apr, 09:18 PM Reply Like
  • GHDMONTANA
    , contributor
    Comments (2) | Send Message
     
    You forgot to mention (1) the rating agencies, who were government sponsored, (2) Acorn, Al Sharpton, Jesse J, Maxine Waters, etc. who stood up for Fan/Fred; and the OTS which stood by and watched CountryWide, Washington Mutual, Golden West, IndyMac, and AIG invest in defective assets and thus fail. And what about the SEC which failed miserably in oversight of Wall Street?
    25 Apr, 09:24 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (1917) | Send Message
     
    Congrats to all 3 comments above.

     

    I APPLAUD your honesty, bluntness and factual comments.

     

    Now cnbc (including today) parades barney frank around their station for his "opinions" and "business insights".

     

    Can you believe how far we have sunk !
    25 Apr, 09:51 PM Reply Like
  • Dr. Poly
    , contributor
    Comments (362) | Send Message
     
    So, the DOJ gets the funds - they weren't the harmed parties. When will the money be returned to those who were harmed? This is getting more farcical every day. Congress is more reactionary than ever - what are they doing to stop and when will they level a punishment that will actually deter the event from happening again?
    25 Apr, 10:23 PM Reply Like
  • go-4-it
    , contributor
    Comments (494) | Send Message
     
    Glad to see the crooked banks getting hit, but, chump change to them. There all crooks, and crooked money is just changing hands. Dr. Poly is so right, what about the real investors that got hung out to dry?
    25 Apr, 11:54 PM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
     
    "The Gathering of the Thieves"... the next HBO movie... they say the cast of characters stretches clear around the globe!
    26 Apr, 08:46 AM Reply Like
  • Hendershott
    , contributor
    Comments (1510) | Send Message
     
    The wages of sin.
    26 Apr, 07:30 PM Reply Like
  • hotmix
    , contributor
    Comments (64) | Send Message
     
    Ha , They should put those funds in Social Security, repay the funds the gov. took ,O-wait I`am sorry they don`t have to ,somebody said its all from one pot . So sad .
    27 Apr, 09:20 AM Reply Like
  • Jason B
    , contributor
    Comments (285) | Send Message
     
    Buy with 10 hands if you can get them. Once Holder is gone these stocks with triple.
    28 Apr, 11:51 AM Reply Like
  • go-4-it
    , contributor
    Comments (494) | Send Message
     
    hope they all tank. Looks like BAC was caught with their pants down today. Oh well another fine, no big deal, nobody goes to jail in bankland.
    28 Apr, 10:52 PM Reply Like
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