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US investment bank Citigroup is to pay $730m (£484m) to settle a class-action suit by bondholders brought over the financial crisis. The suit alleged Citi misled buyers of its bonds over its exposure to subprime mortgages and other high-risk securities between 2006 and 2008. Citi denied the claims, but said it agreed to the settlement to "eliminate uncertainties". In August 2012, Citi struck a $590m settlement with shareholders. Bondholders claimed that Citi not only misrepresented its exposure to mortgage-backed assets, but also understated losses on loans. But the bank said in a st
Citigroup and Bank of America Merrill Lynch reported disappointing fourth quarter profits on Thursday, as the sub-prime mortgage crisis that unravelled more than five years ago continued to hinder two of the country's biggest lenders. Citigroup, the third-biggest US bank by assets, reported earnings of $1.2bn (£750m) in the final three months of the year, or 38 cents per share. That compares with $933m in the same period a year earlier. Excluding one-off factors, related to restructuring and accounting for outstanding debt, the bank earned 69 cents per share, well below the 97 cents p
Citigroup has agreed to pay $590m (£373m) to investors who allege they were misled about the scale of the bank’s ownership of troubled mortgage debt before the financial crisis. The class-action suit, which was filed in New York in 2009, accused Citi of employing a “CDO-related quasi-Ponzi scheme” to conceal the growing risks on its balance sheet from the mortgage-backed debt and collateralised debt obligations (CDOs) it owned. Citi told the investors that the CDOs had been sold when, in fact, the bank still remained liable for any losses the products suffered, the lawsuit claimed. The s