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Citigroup : U.S. Plan Settlement Talks — Update

Citigroup : U.S. Plan Settlement Talks — Update

WASHINGTON–The Justice Department and Citigroup Inc. plan to meet next month in the opening salvo of multibillion-dollar settlement talks aimed at ending probes into how the bank handled shoddy mortgage-backed securities, according to people familiar with the matter.

The scheduled meeting will be the first chance for each side to put a number on a potential settlement, but in the past such numbers have been far apart, representing little more than starting negotiating positions.

The Justice Department hasn’t yet floated a number with the bank–which has already settled several other mortgage-related lawsuits–but an agreement could tally in the billions of dollars.

The discussions, which center on the bank’s sale of residential mortgage-backed securities, are part of a continuing push by the Justice Department to bring big banks to heel for activities that regulators and law enforcement believe contributed to the 2008 financial crisis.

3 responses to “Citigroup : U.S. Plan Settlement Talks — Update

  1. About the Cases and the mention of OCWEN Bank Why was there no mention of them as a follow on to the case. That seems quite Strange to say the least. Maurice

  2. I would certainly like to hear more about the role that OCWEN plays in the setttlement and the fact that they appear in the statement: The bankruptcy terms allowes Berkshire Hathaway and OCWEN to purchase over $400 billion worth of mortgages and RBMS trusts for less than $5 billion. Thus in effect wiping out the mortgage records of millions of American Homeowners!!! Maurice

  3. I am not sure if you are referring any DOJ cases against Ocwen or whether there are Ocwen cases mentioned on this blog. I haven’t heard any cases from DOJ going after non-bank servicers like Ocwen which the agency should be probing into the non-banks such as Ocwen, Nationstar, etc. However, I have posted Ocwen cases on this blog such as the probe and settlement with Ocwen by the CFPB, the current and on-going probe against Ocwen by the NY regulator Benjamin Lawsky, etc.

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