Citigroup reportedly nears a massive settlement over mortgage securities

Citigroup reportedly nears a massive settlement over mortgage securities
(Image credit: Justin Sullivan/Getty Images)

Citigroup is close to a $7 billion settlement agreement to resolve a Justice Department investigation into whether it defrauded investors on billions of dollars worth of mortgage securities ahead of the financial crisis, a source familiar with the matter said Tuesday. The case is linked to a broader investigation of faulty mortgage securities that helped fuel the mid-2000s housing bubble. Several billion from the settlement, which could come next week, would go toward helping struggling borrowers. Read more at Reuters.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.