Citigroup agrees to pay $7 billion settlement in federal probe
07/14/2014 // West Palm Beach, Florida, US // JusticeNewsFlash // Justice News Flash // (press release)
Washington – Citigroup has reportedly agreed to a $7 billion settlement in connection with a federal investigation into some of its mortgage related business practices. As reported by the Associated Press (AP), the justice department stated Monday that the financial services corporation admitted to deceptive practices in handling risky subprime mortgages, which Attorney General Eric Holder has stated contributed to the worst financial crisis since the Great Depression.
Included in the terms of the settlement are a $4 billion civil penalty to be paid to the federal government and a $2.5 billion in consumer relief.
The settlement has been criticized by some as letting the corporation off easy. Bartlett Naylor, a financial policy advocate for Public Citizen, is quoted by the AP as stating of the agreement, “In the context of the damage done, the damage even described by the attorney general, we’re not even in the same ballpark.”
As noted in the report, Holder acknowledged that the recent settlement and others would not provide adequate compensation for many Americans; however Associate Attorney General Tony West stated that a significant number would benefit.
This report is provided by Justice News Flash – Washington Legal News
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