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Citigroup Agrees To Settlement Over Risky Mortgages

RENEE MONTAGNE, HOST:

NPR's Business News begins with a 7 billion-dollar payout by Citigroup. The government says the giant bank misled investors about certain subprime mortgages before the financial meltdown. The Justice Department and Citigroup reached the settlement after two and a half months of tense negotiations. Citigroup will pay $4 billion to the Justice Department and spend $2.5 billion to help struggling homeowners modify their mortgages. Citigroup is the second big bank to reach a settlement over mortgage-based securities. JPMorgan Chase agreed to pay $13 billion last November, and talks are underway between the government and Bank of America. Transcript provided by NPR, Copyright NPR.

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