Citigroup to pay $7bn to settle risky sub-prime mortgages caseJuly 14, 2014 - 18:37 AMT PanARMENIAN.Net - Banking giant Citigroup will pay $7bn to U.S. authorities to settle an investigation into risky sub-prime mortgages, BBC News reports. Citigroup will pay $4bn to the Department of Justice and $2.5bn for "consumer relief", the latter including investment in affordable homes and mortgage relief. The settlement stems from the sale of securities made up of sub-prime mortgages, which were at the center of the 2008 financial crisis. Citigroup is the second major bank to pay a settlement since an investigation into the loans. JPMorgan Chase paid $13bn last year to settle government investigations. The Citigroup fines are said to have surprised stock analysts and people inside the bank, who had hoped to settle for less. According to the U.S. Attorney General, Eric Holder, "under the terms of this settlement, the bank has admitted to its misdeeds in great detail". He said the settlement "does not absolve Citigroup or its employees from facing any possible criminal charges in the future". Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Ucom General Director gives lecture at French University in Armenia The General Director of Ucom Ralph Yirikian delivered a lecture at the French University of Armenia. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. |