Citigroup Reaches USD1.1bn Settlement Over RMBS Case
News: US-based financial services company Citigroup has reached an USD1.12bn settlement with a group of 18 institutional investors over the alleged sale of faulty residential mortgage based securities (RMBS) before the financial crisis of 2008. Under the terms of the deal, Citi will place a binding offer to the trustees of 68 Citi-sponsored mortgage securitisation trusts to pay USD1.12bn to the trusts. The bank will also pay an additional USD100mn as certain fees and expenses. 'This settlement resolves a significant legacy issue from the financial crisis and we are pleased to put it behind us,' Citi said (Banking Business Review).