WASHINGTON — Citigroup announced Monday that it will pay about $7 billion to settle a federal investigation into risky subprime mortgages, the type that helped bring on the financial crisis.
The bank, one of America’s largest, revealed the deal as part of its quarterly earnings report. At a news conference later, Attorney General Eric Holder said the bank’s behavior had “shattered lives and livelihoods throughout the country and around the world.”
The settlement stems from the sale of securities made up of subprime mortgages, which led to both the housing boom and bust that triggered the recession at the end of 2007.
Read tomorrow's Arkansas Democrat-Gazette for full details.