July 9, 2014
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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. Harold Maass

8:26 p.m. ET
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John Kasich came in a very distant third place in the Indiana Republican primary, but the Ohio governor says the results are "not going to alter" his campaign plans.

"Our strategy has been and continues to be one that involves winning the nomination at an open convention," the Kasich campaign wrote in a note on Facebook. Kasich will remain in the race unless a candidate reaches 1,237 bound delegates before the convention because he "remains the candidate best positioned to win a contested convention."

The campaign argues that a "plurality of Trump delegates will support him after the first ballot," and he can unite the Republican Party "better than anyone else. Trump's cynical sowing of division will render the GOP into angry, irrelevant status for decades." The campaign also called Trump out for "disrespectful ramblings" and said "American overwhelmingly want to vote for Governor Kasich in a general election." Catherine Garcia

8:12 p.m. ET

On Tuesday, Arizona Gov. Doug Ducey (R) identified the Navy SEAL killed by Islamic State fire outside Mosul, Iraq, as Charlie Keating IV, a grandson of Charles H. Keating Jr., a financier at the center of the Savings and Loan crisis in the 1980s and early '90s. The elder Keating was chairman of the Lincoln Savings and Loan Association, which collapsed in 1989, leading to accusations that five senators have improperly intervened in a federal banking investigation on behalf of Keating.

Charlie Keating was the third U.S. serviceman killed in the battle against ISIS in Iraq, and White House press secretary Josh Earnest called his death a "vivid reminder" of dangers U.S. service members face in Iraq and Syria. "They are taking grave risks to protect our country. We owe them a deep debt of gratitude," he said. According to Iraqi Kurds and U.S. defense officials, Keating was killed by small arms fire after ISIS fighters broke through the Kurdish Peshmerga frontline with armored Humbles and bulldozers. He was advising the Peshmerga forces as they battle ISIS just north of Mosul. You can watch Earnest describe the death, and the mission, below. Peter Weber

7:58 p.m. ET
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It's too early to call the Indiana Democratic primary, but Bernie Sanders told an audience in Louisville, Kentucky, he is proud of his showing in the race so far.

"As of today we have now won 17 primaries and caucuses," he said. "The ideas we are fighting for are the ideas of the future of America, and the future of the Democratic Party." Sanders reminded the crowd he is running for president because they live in "the wealthiest country in the history of the world, but most Americans don't know that because the economy is rigged and almost all new income and wealth goes to the top one percent."

Sanders called income inequality the "great moral issue of our time, the great economic issue of our time, the great political issue of our time," and said "together, we will address that issue." He also promised to create an economy that "works for all of us, not just the 1 percent," and said he would invest in America's "crumbling" infrastructure, creating millions of jobs. Catherine Garcia

7:39 p.m. ET
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The #NeverTrump Republicans conceded on Tuesday night that Donald Trump's "victory in Indiana makes the road ahead more challenging" for the movement that exists, as Never Trump senior adviser Rory Cooper said in a statement, "to challenge Donald Trump's ascent to the Republican nomination." But Cooper said the campaign will continue, presumably to focus on the other part of the group's existential mission: to "distinguish [Trump's] demagoguery from that of the conservative cause."

Trump, if nominated, will "lose in historic fashion," Cooper predicted, but Never Trump will work toward "protecting Republican incumbents and down-ballot candidates" by telling voters that Trump doesn't represent these candidates' "values and principles," thus helping avoid a "wave election." The statement ended on a semantic note, pointing out that "never does not mean maybe."

With Trump inevitable, the #NeverTrump movement has "morphed" into something like "a not-so-secret society of like-minded stalwarts who are adopting #NeverTrump as a personal philosophy, instead of a call to arms," S.E. Cupp says at CNN. They may no longer be able to actually stop Trump, but they will keep an eye on which Republicans switch from criticizing Trump to backing him, and "for #NeverTrump, there will be long memories and little forgiveness for anyone who caves." Peter Weber

7:39 p.m. ET

Donald Trump, you just won the Indiana Republican primary, what are you going to do next? I'm going to tweet about Ted Cruz being a wacko!

Proving that nothing gets between Trump and his insults, the Republican frontrunner decided to get in several digs against his rival before thanking the people of Indiana for giving him a decisive win in the state's primary. His first tweet was in reference to a diatribe made earlier in the day by Cruz, in which he called Trump a "serial philanderer" and (brace yourself) said he has "venereal diseases."

It was only after he made those burns did Trump turn his attention to his supporters, thanking them for his big win.

Trump may be done with Cruz for now, but the night is still young. Catherine Garcia

7:07 p.m. ET
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Bernie Sanders has taken the lead in the Indiana Democratic primary. With 40 percent of precincts reporting, Sanders has 52 percent of the vote, compared to Clinton's 48 percent. Catherine Garcia

7:06 p.m. ET
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Donald Trump won Tuesday's Republican primary in Indiana, The Associated Press and several news networks projected just after the last polls closed, handing Trump his seventh straight win. With 55 percent of precincts reporting, Trump has 53 percent of the vote, to 37 percent for Ted Cruz and 8 percent for John Kasich. Indiana was considered a must-win state for Cruz, who had reached a deal with Kasich to let him compete head-to-head with the real estate billionaire. Peter Weber

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