"U.S. preparing civil charges against Citigroup, Merrill Lynch: sources"

[applegrove]

U.S. preparing civil charges against Citigroup, Merrill Lynch: sources

By Aruna Viswanatha and Emily Flitter at Reuters

http://www.reuters.com/article/2013/12/17/us-usa-doj-banks-idUSBRE9BG1DG20131217

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(Reuters) - The Justice Department is preparing to file civil fraud charges against Citigroup Inc and Bank of America's Merrill Lynch unit over their sale of flawed mortgage securities ahead of the financial crisis, according to people familiar with the probes.

Civil investigators have compiled evidence that allegedly shows that investors lost tens of billions of dollars after purchasing securities Citigroup had marketed as safe even though the bank had reason to believe otherwise, one person said.

An investigation into the mortgage securities marketed by Merrill Lynch, which Bank of America agreed to acquire at the height of the crisis in 2008, is also close to completion, two other people said.

Probes against Royal Bank of Scotland and Credit Suisse are also underway and progressing, according to another two people familiar with those cases.




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[Gothmog]

1. These cases will all settle

The Federal government never takes these cases to trial