Citigroup confirms $7B settlement with DoJ over RMBS case


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.

From other sites
Comments (11)
  • ppk721
    , contributor
    Comments (46) | Send Message
     
    TOO big to JAIL-- HSBC-UBS-JPM-BAC-C--pa...
    14 Jul 2014, 08:10 AM Reply Like
  • 2009
    , contributor
    Comments (24) | Send Message
     
    WELCOME to United states.. No one went to JAIL in the financial meltdown that caused millions of middle class families to suffer. as an outsider this seems amazing to me how things work in the Richest country on the planet.
    14 Jul 2014, 09:03 AM Reply Like
  • Lucernam
    , contributor
    Comments (20) | Send Message
     
    Billions in fines yet no one indicted, jailed or even accused. Why no grand jury?
    What happened to Justice? How will we prevent further and more serious crimes if absolutely no one is held accountable? Can the average citizen commit civil crimes at will and give the "cops" part of the profit to make it "go away"?
    Is this the America you folks want? Until we grow some balls and stop this it will just get worse.
    14 Jul 2014, 09:10 AM Reply Like
  • phxcrane
    , contributor
    Comments (763) | Send Message
     
    Until we start throwing politicians in jail. It will just get worse.
    14 Jul 2014, 09:17 AM Reply Like
  • Jason Cawley
    , contributor
    Comments (6362) | Send Message
     
    The shakedown never ends...
    14 Jul 2014, 11:58 AM Reply Like
  • Nettligent
    , contributor
    Comments (1346) | Send Message
     
    Citigroup, BoA, JP Morgan and other financial companies will not change and reserve capital to pay as part of business. The profit is huge, commission is generous and penalty is a small price to pay. Make money now and smarter not to get caught. Too big to jail.
    14 Jul 2014, 01:06 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9628) | Send Message
     
    Another company that broke the law and simply opens its checkbook and everything is back to business as usual.

     

    As stated above, until top executives are held accountable and sent to jail, this will keep happening. There is a pleasant little place not too far from my home called Attica. A short stint there would have executives thinking twice about breaking the law. A very scary place to even drive past, yet alone serve time in.

     

    Where does the billions in fines go? Who is benefitting from all of these fines?
    14 Jul 2014, 03:02 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13495) | Send Message
     
    LOL yay taxpayers will end up paying for their illegal activities once the market crashes again. LOL, these guys need to be kicked out and banned from doing pretty much anything.
    15 Jul 2014, 12:51 AM Reply Like
  • Jason Cawley
    , contributor
    Comments (6362) | Send Message
     
    The desire to combine vibrant capitalism with all capitalists being in jail is a round square and a misunderstanding.
    15 Jul 2014, 11:34 AM Reply Like
  • dnorm1234
    , contributor
    Comments (1111) | Send Message
     
    >their illegal activities

     

    I see you've held positions at at least one bank; should we assume you're part of the problem and should be jailed as well?
    15 Jul 2014, 12:19 PM Reply Like
  • juneedmoney
    , contributor
    Comments (2) | Send Message
     
    So, how do we use this to our advantage? Later for those guys and if they do time or not. I personally saw BAC establish a higher norm in light of this news. Does that mean it's time to invest in them and/or CITI/JPMorgan?
    15 Jul 2014, 01:45 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs