Citigroup (C) has agreed to pay $7 billion to settle investigations into its sale of mortgage securities leading up to the financial crisis. Citi will pay $4.5 billion in fines, $2.5 billion of that will be designated to aid struggling consumers. The bank said the consumer relief funds will go toward programs that help finance affordable rental housing and residential mortgages, among other benefits. Citi said it will take a pretax charge of about $3.8 billion on its second quarter earnings as a result of the settlement. Citi is the second big U.S. bank after JPMorgan (JPM) to reach a settlement with the U.S. government tied to the sale of mortgage securities. TheStreet's Brittany Umar has details from New York.
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C, JPM, BAC