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Citigroup to pay $1.13B to settle investor claims
http://gazette.com/citigroup-to-pay-1.13b-to-settle-investor-claims/article/feed/106582Citigroup to pay $1.13B to settle investor claims
Associated Press Updated: April 7, 2014 at 7:31 pm • Published: April 7, 2014
NEW YORK (AP) — Citigroup has agreed to pay $1.13 billion to settle claims by investors seeking that the lender buy back billions in residential mortgage-backed securities.
The New York-based investment bank said Monday that the pact it reached with 18 institutional investors calls for Citigroup to make a binding offer to the trustees of 68 Citi-sponsored trusts that bundled some $59.4 billion in home loans into securities from 2005 to 2008.
The settlement offer, which must be approved by the trustees and the court, would release Citi from having to buy back mortgages sold to the trusts.
But the lender would remain vulnerable to other types of investor claims, including misrepresentations in the offering documents associated with the securities. It could also face potential actions by regulators.