- Citigroup (NYSE:C) +1.2% premarket after confirming it reached a $7B settlement with the Justice Department in the U.S. government's investigation into mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis.
- The figure was more that twice what many analysts expected earlier this year but less than the $12B the government had sought originally.
- Citi will pay a $4B civil penalty to the DoJ, plus $500M to the FDIC and several states, and will spend $2.5B on "consumer relief."
- Citi says it will take a related pre-tax charge of ~$3.8B in Q2; the bank will report Q2 earnings shortly.
at CNBC.com (Nov 19, 2014)