Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Citi to pay US$1bn in RMBS claims

Citigroup announced on Monday that it will settle US$1.13 billion in claims stemming from mortgage securities the group sold during the financial crisis.

The firm will pay 18 institutional investors, including BlackRock Financial Management and Goldman Sachs Asset Management, to resolve legacy issues in its securities and banking business from between 2005 and 2008. 

The agreement does not release the firm from potential investor claims relating to alleged misrepresentations in the offering documents associated with these private-label securitisations, nor from any potential regulatory actions.

Advertisement
Advertisement

The settlement is subject to approval by trustees in the case and possible court approval.

"This settlement resolves a significant legacy issue from the financial crisis and we are pleased to put it behind us," Citigroup said in a statement.

Citi to pay US$1bn in RMBS claims
mortgagebusiness

Latest News

The corporate regulator has confirmed that responsible lending obligations are not a barrier to making variations from P&I to IO terms i...

The non-major has continued to recover lost ground in the home lending space. However, a rise in interest income has not been enough to prev...

Expectations of a “significant economic shock” in the first half of 2020 have prompted both Fitch Ratings and S&P to downgrade Austr...

FROM THE WEB
podcast

LATEST PODCAST: Managing the influx of COVID-19-related loans

Do you expect COVID-19 to reduce or increase your business flows?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.