Citigroup Inc. has become the second but probably not the last bank to bow out of the Federal Housing Finance Agency’s mortgage-backed securities litigation onslaught.
Citi revealed in a court filing on Tuesday that it reached a confidential settlement with the FHFA, which serves as conservator for Fannie Mae and Freddie Mac. The deal comes as the FHFA and its lawyers have won a series of rulings bolstering their claims that 18 of the world’s biggest banks duped Fannie and Freddie into purchasing $200 billion in MBS by misrepresenting the quality of the underlying loans.
