Citi pays over $1bn to settle mortgage-bond investor claims

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Citigroup agreed to pay $1.13bn to settle claims from mortgage-bond investors as it seeks to curb liabilities tied to the financial crisis. It took a $100m first-quarter charge.

Bloomberg reports that the 68 securitization trusts covered by the settlement issued a combined $59.4bn in mortgage-backed securities from 2005 to 2008, the bank said Monday in a statement.

The agreement covers 18 investors represented by Gibbs & Bruns and trustees have 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.

'This settlement resolves a significant legacy issue from the financial crisis and we are pleased to put it behind us', Citigroup said in its statement.

To access the complete Bloomberg article hit the link below:

Citigroup Reaches $1.13 Billion Pact Over Mortgage Bonds

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