Citigroup and the Justice Department are reportedly closing in on a $7 billion deal that would settle allegations that the bank sold shoddy mortgages in the run up to the 2008 financial crisis.
The deal is expected to be announced in the next week and comes after months of tense negotiations between the bank and government officials — negotiations that became so tense that in June, the Justice Department threatened to sue if the bank did not agree to the government’s proposed penalty.
The settlement may fall short of that demand, but the bank may be paying more than once expected. The deal will be made up of a monetary penalty and relief for homeowners.
Here & Now’s Robin Young speaks with Business Insider’s executive editor Joe Weisenthal to discuss what this settlement means and who may be next.
Guest
- Joe Weisenthal, executive editor at Business Insider. He tweets @TheStalwart.
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