Citi Settles for $7 Billion
Wikimedia Commons Ouch! Earlier this week it was announced that Citigroup had settled the inquiry into the company’s mortgage practices – to the tune of $7 billion. The deal, which was settled with the Justice Department, represents one of the largest settlements ever made in response to a federal inquiry; specifically in terms of the penalties levied. Of the $7 billion, $4 billion was in penalties alone while $2.5 billion will go towards providing mortgage modifications to homeowners. Another $500 million will go to the Federal Deposit Insurance Corp and 5 separate states.