Citigroup close to settling fraud claims of mortgage securities

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Citigroup is close to paying about $7bn to resolve a U.S. probe into whether it defrauded investors on billions of dollars worth of mortgage securities in the run-up to the financial crisis, a source familiar with the matter said on Tuesday.

Reuters reports that a majority of the settlement is expected to be in cash, but the figure also includes several billion dollars in help to struggling borrowers, the source said.

An announcement of the settlement between the bank and the U.S. Department of Justice could come as early as next week, the source said.

A settlement of around $7bn for Citigroup would be higher than analysts had expected based on the bank's mortgage securities business.

To access the complete Reuters article hit the link below:

Citigroup may pay $7 billion to resolve U.S. mortgage probes - source

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