Independent monitor Thomas Perrelli released his third report this year giving details of Citigroup Inc.’s progress in complying with a settlement valued at $2.5 billion.
Citigroup agreed to Perrelli’s appointment as part of the settlement.
The settlement resolved issues from the days before the financial crisis of 2008, addressing allegations that the bank sold defective residential mortgage-backed securities and collateralized debt obligations in 2006 and 2007. Citigroup settled on July 11, 2014, with the U.S. Justice Department and five states, agreeing to pay $4.5 billion to the governments.
The bank also agreed to remedial measures, promising $2.5 billion in consumer relief, according to a summary of the first monitor’s report prepared by Perrelli in January. The relief was to include loan modification for so-called underwater homeowners, down payment and closing cost assistance, and subordinate financing for affordable rental housing projects.
The ongoing nature of that relief would require monitoring. Under the terms of the settlement agreement, “any cost associated” with the monitor “shall be borne by Citigroup.”
Perrelli, a partner at Jenner & Block LLP’s Washington office and a former associate attorney general, has been measuring the bank’s progress in consumer credit relief, investments in affordable housing and consumer outreach.
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