Citigroup Reaches Mortgage Settlement

By Nikki Henderson |

Published 07/14 2014 03:58PM

Updated 07/14 2014 04:06PM

Citigroup and the Justice Department have agreed to a $7 billion deal that will settle a federal investigation into the mortgage securities the bank sold in the run-up to the financial crisis.  Steve Handelsman reports.

One of America's largest banks, Citigroup, agreed on Monday to pay seven billion dollars to settle the federal investigation into risky mortgages that dragged our nation into the Great Recession.

Critics of this investigation are disgruntled by the fact that it took so long to embark on this mission.

The Justice Department, however, says that this is proof that law enforcement will go after these institutions, regardless of their size or power.

"The bank's activities shattered lives and livelihoods throughout the country," said U.S. Attorney General Eric Holder.

The activities that Holder is referring to are the accusations that Citi and other banks combined thousands of subprime home mortgages they knew could end up in default and sold them as safe investments.

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