Citigroup to pay $7 Billion settlement

Eric Holder, Tony West

Attorney General Eric Holder listens at right as Tony West, the Justice Department’s lead negotiator, answer questions after announcing at the Justice Department in Washington Monday, July 14, 2014, that Citigroup will pay $7 billion to settle an investigation into risky subprime mortgages, the type that helped fuel the financial crisis. The agreement comes weeks after talks between the sides broke down, prompting the government to warn that it would sue the New York investment bank. The bank had offered to pay less then $4 billion, a sum substantially less that what the Justice Department was asking for. The settlement stems from the sale of securities made up of subprime mortgages, which fueled both the housing boon and bust that triggered the Great Recession at the end of 2007.