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Department of Justice Settles With Citi Over Toxic Mortgage Securities


The Department of Justice is prepared to end its probe into Citi over the sales of troubled mortgage securities before the recession. According to Dow Jones, Citi is expected to pay more than $4 billion to settle the investigation. The settlement negotiations between the U.S. government and Citi began in April. The Justice Department previously demanded Citi pay $10 billion for the toxic mortgage-backed securities it sold before 2008. Citi, however, believed the amount was excessive because its dealing in the mortgage market was far smaller than other global banks at the time. In June, the Department of Justice said it would take Citi to court if the bank refused to reach a reasonable agreement. Dow Jones reported that a settlement could become available as early as next week.