"U.S. to Sue Citigroup Over Faulty Mortgage Bonds: Sources"
U.S. to Sue Citigroup Over Faulty Mortgage Bonds: Sources
by Reuters at the NY Times
http://www.nytimes.com/reuters/2014/06/13/business/13reuters-citigroup-investigation.html?smid=re-share&_r=0
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WASHINGTON/NEW YORK The U.S. Department of Justice is preparing to sue Citigroup Inc on charges that the bank defrauded investors on billions of dollars worth of mortgage securities in the run-up to the financial crisis, after talks to resolve the probe broke down, people familiar with the matter said on Friday.
A lawsuit could be filed in U.S. District Court in Brooklyn as early as next week, the people said, as the bank and civil prosecutors stood far apart in reaching an agreement on the size of any deal.
The settlement negotiations had involved penalty numbers of $10 billion or more, another person familiar with the talks said.
Bloomberg News reported earlier on Friday that the Justice Department had asked the bank to pay more than $10 billion, and that the bank had offered less than $4 billion.
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