Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Citigroup Compliance Update Posted

Jaclyn Jaeger | January 21, 2015

Six months following Citigroup's $7 billion landmark settlement with the government to resolve a federal investigation into the sale of subprime mortgages, the first report on the bank's progress has arrived.

In July, Citi acknowledged that, over the course of numerous transactions, the bank put together billions of dollars of mortgage-bond deals with loans it knew were defective, and then misrepresented the quality of those mortgage-bond deals to investors who purchased them. Under terms of the settlement, Citigroup agreed to pay $4 billion in civil monetary penalties to the Justice Department, $500 million in compensatory damages to state attorneys’ general and the FDIC, and the remaining $2.5 billion in the form of relief to aid consumers harmed by its conduct.

Thomas Perrelli, a partner with the law firm Jenner & Block who...

Buy this article for $49, or subscribe to Compliance Week for a month at $149 and get unlimited article access for 30 days.