Citigroup To Pay $7 BillionMd Noman Siddique (Author) Published Date : Jul 14, 2014 13:30 ET
After an issue regarding the mortgage securities which the Citigroup sold during the financial crisis on 2008 in the US, the banking giant is ready to pay $7 billion to end the probe.
According to the sources the giant group will be paying all the money in cash where City has to pay seven million dollars to the borrowers who are struggling at the moment.
While the sources also said that the announcement of the settlement between Citigroup and the US Department of Justice will be made in the next few days.
However both Citigroup and the spokeswoman of the US Justice Department have denied to make a comment over the issue.
But according to the analysts $7 billion is much higher than they have anticipated comparing to the business of the bank s mortgage security.
It was also revealed that the US department has demanded a staggering $10 billion from the Citigroup where the banking giants have kept $3 billion to solve the issue.
And after the higher demand and much lesser amount in response the authorities were on the verge of taking action against the bank to sue which was a major blow for the Citigroup.
Recently Citi bank is going to announce their quarter statement and the analyst have been expected the amount of $3.4 billion from the company.
Few other banks have already faced similar situations and paid some big amounts to the US authorities before.
Citigroup To Pay $7 Billion