Massachusetts To Receive Windfall From Citigroup
Massachusetts is getting an almost $46 million share of a $7 billion federal-state settlement over Citigroup's mortgage-backed security activities.
In the deal announced Monday, Citigroup will make a $4 billion civil monetary payment to the Justice Department, and another $500 million in compensatory payments to state attorneys general and the Federal Deposit Insurance Corp.
The bank will provide $2.5 billion in consumer relief, which will include financing for construction and preservation of affordable housing, as well as principal reduction and forbearance for residential loans.
The settlement stems from the sale of securities made up of subprime mortgages, which led to both the housing boom and bust that triggered the recession at the end of 2007.
Massachusetts Attorney General Martha Coakley says the settlement provides significant relief to homeowners and taxpayer.