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.
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.
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