Citigroup will pay 7 billion by selling toxic mortgages

The bank Citigroup announced an agreement with the Justice Department to pay seven billion dollars from the sale of subprime mortgages in the years before the outbreak of the financial bubble in 2008.

The bank, which announced the agreement, pays 4 billion dollars in civil penalties to the DOJ, plus 500 million to the Federal Deposit Insurance Office (FDIC).

In addition, you must pay another $ 2,500 to facilitate the refinancing of mortgages for homeowners who are in financial difficulties to meet their payment obligations.

Citigroup chief executive, Michael Corbat, said in a statement that “the agreement allows us to move forward and focus on the future, not the past.”

The bank has already announced its intention to take 3,800 million in its accounts for the second quarter of the year to meet the payment.

The US Attorney General Eric Holder held the agreement reached and noted in a footnote that “the misconduct of the bank had been outrageous. Under the terms of this agreement, the bank has admitted his poor showing in great detail.”

Research from the US authorities includes other large financial institutions such as JP Morgan Chase, who last November agreed to pay 13 billion dollars for his role in the sale of high-risk financial assets backed by mortgages before the financial crisis 2008.

The Bank of America has opened a similar case and is expected in the coming months to reach agreement with regulators.