.

State's Share of $7B Citigroup Settlement for Bad Loans: $200 Million

"Citigroup misled consumers and profited by providing California's pension funds with incomplete information about mortgage investments," state Attorney General Kamala Harris said.

California Attorney General Kamala D. Harris. Patch file photo.
California Attorney General Kamala D. Harris. Patch file photo.

California Attorney General Kamala D. Harris says the Golden State will collect around $200 million of the roughly $7 billion that Citigroup announced today it would pay to settle federal claims regarding the sale of defective mortgage investments during the subprime housing boom.

Citigroup, the nation's third-largest bank, said this morning it would pay $4.5 billion in fines and $2.5 billion in consumer relief. The settlement stems from the sale of securities made up of subprime mortgages,

Harris, in a statement released in Los Angeles, said California will receive $102.7 million in damages, which will serve to reimburse the state's pension funds for losses on investments in the mortgage-backed securities of Citigroup and its affiliates. The state is also guaranteed at least $90 million in consumer relief, she said.

"Citigroup misled consumers and profited by providing California's pension funds with incomplete information about mortgage investments," Harris said. "This settlement holds Citi accountable and compensates the state's pension funds that protect the retirement savings of hardworking Californians."

--City News Service


alice gaxiola July 16, 2014 at 03:13 PM
How many people who lost their homes in the mortgage crisis are going to get part of the $200 million?
Steve M July 16, 2014 at 04:21 PM
I read a lot of people lost their lives with suicide in that mortgage crisis. I guess that's why greed is listed as one of the "deadly" sins.
Steve M July 16, 2014 at 04:35 PM
Since they can afford the fine, money gave them the 'right to be wrong'. They should be sued to the ground to make an example of them for this fraudulent behavior. Ask some fat cat on wall street and he'll say; "it ain't gonna happen, you want the government to have all the wealth?" Mmmm?.....I didn't think so.
don mckinney July 19, 2014 at 11:09 PM
they need to be voted off the island , the four biggest banks pled guilty to illegally foreclosing on thousands of people , paid a 2 plus billion dollar fine s each and pled guilty for money laundering for the mexican drug cartels and paid 2plus billion dollar fines each during the bailout and received 757 billion dollars bailout that has put them 120 percent more wealthy now than before the monetary crisis of the bush/iraq and cheny/afghanastan , shock and awe killing fest that killed 4500 of our children with misplaced war glorification and the military industrial machine, a real president eisenhower , and kennedy warned us about . These foreign banks own and run our country with military and police as their enforcers ,without them the corruption could be ended .meaning state militias and community police that care . if it smells like a duck and quacks like a duck , etc . NO ONE WENT TO JAIL , ASK A MILITARY PERSON WHY HE WORKS FOR GLOBAL BANKERS ? IT is to get off moms couch and earn a living as a mercenary to support baby mama , and the global bankers , and be a hero in the process .SOCIALISM FEELS FUN TO THEM.They continually pat themselves on the back . GOVERNMENT PAY AND WAR GLORIFICATION .WHEN WILL THE CHAIN OF ABUSE BE BROKEN? NEVER IN AMERICA FOR SURE NEVER IN BANNING ,OR BEAUMONT .WHOS SHOPPING NOW? please answer these questions without the usual sound bites from fox nonnews or your drill seargant .smart answers plz
don mckinney July 19, 2014 at 11:16 PM
kamala harris is the bengazie liar . would you kill foreigners on her good word .military people hate democrats but will do their killing for the money .I have trouble with that logic .explain this and leave the easter bunny and tooth fairy out of your explanation please . I am asking for discussing the big picture here since no american journalist dares bring up the elephant in the room . namely , why accept such losers for leaders .ask the enforcers .

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