{"id":4661,"date":"2014-07-14T17:00:57","date_gmt":"2014-07-15T00:00:57","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=4661"},"modified":"2014-07-14T17:01:44","modified_gmt":"2014-07-15T00:01:44","slug":"citigroup-pay-record-7-billion-settlement-misleading-investors","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=4661","title":{"rendered":"Citigroup To Pay Record $7 Billion Settlement for Misleading Investors"},"content":{"rendered":"

\"U.S.<\/a><\/p>\n

WASHINGTON D.C<\/strong>. – The U.S. Justice Department announced Monday that it has reached a $7 billion settlement –the largest penalty of its kind — with Citigroup Inc. for misleading investors about securities containing toxic mortgages.<\/p>\n

The settlement<\/a> resolves federal and state civil claims that are related to the marketing and selling of residential mortgage-backed securities before Jan. 1, 2009, officials said.<\/p>\n

The settlement doesn’t absolve Citigroup or its employees from facing possible criminal charges, officials noted.<\/p>\n

\u201cThis historic penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi,\u201d said Attorney General Eric Holder. \u201cThe bank’s activities contributed mightily to the financial crisis that devastated our economy in 2008. Taken together, we believe the size and scope of this resolution goes beyond what could be considered the mere cost of doing business. Citi is not the first financial institution to be held accountable by this Justice Department, and it will certainly not be the last.\u201d<\/strong><\/p><\/blockquote>\n

Citigroup acknowledged that it made serious misrepresentations \u00a0to the public about the mortgage loans that were secured under the Financial Institutions Reform, Recovery and Enforcement Act, authorities said.<\/p>\n

Under the settlement, Citigroup must provide relief to underwater homeowners, distressed borrowers and affected communities through a variety of means including financing affordable rental housing developments for low-income families in high-cost areas, officials states.<\/p>\n

This settlement is part of the ongoing efforts of President Obama\u2019s Financial Fraud Enforcement Task Force\u2019s Residential Mortgage-Backed Securities\u00a0Working Group, which has recovered $20 billion to date for American consumers and investors.<\/p>\n

Here is how the $7 Billion will be spent:<\/strong><\/p>\n