Citigroup is close to completing a deal with the Justice Department to pay around $7 billion to resolve a civil investigation into the sale of mortgage investments, The New York Times reports. The amount, which falls short of the previous government demand of $10 billion, is nevertheless more than was once expected.
Around $4 billion of the settlement is expected to be in cash, while the remainder will be made up of “soft dollar penalties,” including mortgage modifications and other forms of relief to homeowners, along with possible payments to state attorneys general who have been involved in the case, a person familiar with the matter told The New York Times.
