Citigroup pays $250m to settle

Citi Building Sign

Citigroup paid $250m to taxpayer-owned Fannie Mae and Freddie Mac to settle a lawsuit over soured mortgage securities, the regulator of the two housing finance firms said on Thursday.

Reuters reports that General Electric also paid $6.25m to settle a similar suit, the Federal Housing Finance Agency said in a statement. Ally Financial, the former parent of bankrupt Residential Capital LLC, paid $475m.

Citi, GE and Ally had previously settled the claims in 2013, but none had disclosed the financial terms.

The banks are among 18 financial institutions that were sued in 2011 for allegedly misleading Fannie Mae and Freddie Mac, the biggest provider of housing finance in the United States, into buying more than $200bn in mortgage-backed securities.

To access the complete Reuters article hit the link below:

Citigroup paid $250 million to resolve U.S. mortgage suit

Deutsche Bank, U.S. shareholders settle lawsuit over mortgages

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