Citigroup pays US$1.1b to settle claims over mortgage bonds
US lender seeks to curb liabilities tied to crisis with accord over mortgage bonds
Citigroup agreed to pay US$1.13 billion to settle claims from mortgage-bond investors as it seeks to curb liabilities tied to the financial crisis.
It took a US$100 million first-quarter charge.
The 68 securitisation trusts covered by the settlement issued a combined US$59.4 billion in mortgage-backed securities from 2005 to 2008, the New York-based bank said in a statement on Monday.
This settlement resolves a significant legacy issue from the financial crisis
The agreement covered 18 investors represented by Gibbs & Bruns and trustees had until June 30 to accept the deal, the law firm said in a separate statement.
The accord must be approved by the Federal Housing Finance Agency.
Citigroup, the third-biggest bank in the United States, is resolving a portion of liabilities tied to mortgages it packaged and sold to investors in the run-up to the 2008 crisis.
JP Morgan Chase and Bank of America, the two largest US lenders, previously agreed to multibillion-dollar settlements with Gibbs & Bruns clients.
