Citigroup to Pay $7 Billion for Subprime Mortgage Scams
Today, the US Department of Justice announced a $7 billion settlement with Citigroup; the financial institution will pay a record-setting $4 billion penalty for misleading investors about securities that included toxic mortgages. Center for Responsible Lending executive vice president Debbie Goldstein comments on the settlement below. CRL is a nonprofit research and advocacy organization focused on consumer lending. In December 2006, CRL published Losing Ground, the first comprehensive, nationwide review of millions of subprime mortgages and predicted the subprime mortgage crisis that began in