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  1. 22 Jul '14 22:06 / 1 edit
    Citigroup has agreed to pay $7 billion to settle a US government investigation into toxic mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis, according to the US Justice Department.

    The settlement marks the end of months of negotiations during which the government reportedly demanded $12 billion and threatened to sue Citigroup.

    The Justice Department said in a statement on Monday: “The settlement does not absolve Citigroup or its employees from facing any possible criminal charges.

    “Citigroup will pay out the remaining $2.5 billion in the form of relief to aid consumers harmed by the unlawful conduct of Citigroup - including loan modification for underwater homeowners, refinancing for distressed borrowers, down payment and closing cost assistance to home buyers…”

    Attorney General Eric Holder said: “This historic penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi. The bank’s activities contributed mightily to the financial crisis that devastated our economy in 2008.

    “We believe the size and scope of this resolution goes beyond what could be considered the mere cost of doing business.”

    Banking giant Citigroup will pay $4bn to the Justice Department, the largest penalty imposed to date under the Financial Institutions Reform, and $2.5bn to struggling consumers affected by its practices.

    Michael Corbat, Chief Executive Officer of Citigroup, said: “We believe that this settlement is in the best interests of our shareholders, and allows us to move forward and to focus on the future, not the past.”

    Citigroup is the second major bank to pay a settlement since an investigation started.

    Last November, JP Morgan Chase, the biggest bank in the US agreed to pay a record $13 billion settlement to regulators.

    http://euroasianews.com/city-bank-to-pay-7-bn-in-settlement-for-toxic-mortgages/

    Has the US government ever successfully prosecuted individuals of a bank on criminal charges of fraud or any other financially related felony? and if not, why not?
  2. 23 Jul '14 04:15 / 3 edits
    Originally posted by robbie carrobie
    Citigroup has agreed to pay $7 billion to settle a US government investigation into toxic mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis, according to the US Justice Department.

    The settlement marks the end of months of negotiations during which the government reportedly demanded $12 billion and threatened to s ...[text shortened]... k on criminal charges of fraud or any other financially related felony? and if not, why not?
    [/b]
    So who is going to jail Robbie? Who will lose their job? LOL.

    It's like GM. Bail them out, sue them for criminal activity and ask for the money back, bail them out, sue them for criminal activity and ask for the money back, bail them out...

    Do you notice a pattern here Robbie?

    These chaps are simply too big to fail, don't ya know What would they DNC and GOP do without corporate funds to help them win year after year? After all, Hillary is in the poor house and needs funds!!
  3. 23 Jul '14 07:55 / 1 edit
    Originally posted by whodey
    So who is going to jail Robbie? Who will lose their job? LOL.

    It's like GM. Bail them out, sue them for criminal activity and ask for the money back, bail them out, sue them for criminal activity and ask for the money back, bail them out...

    Do you notice a pattern here Robbie?

    These chaps are simply too big to fail, don't ya know What would t ...[text shortened]... nds to help them win year after year? After all, Hillary is in the poor house and needs funds!!
    GM is one thing whodey but here we are talking about corporate fraud, not merely mismanagement. I am trying to understand why no criminal charges have been brought? If you engage in fraud surely its a felony and you should be prosecuted? Why have none of the individuals involved in this fraud ever been brought to justice? Not only have they kept the proceeds of their fraud in terms of salary and bonuses they remain at large. If you or I commit a fraud will we not be prosecuted as an act of criminality. If the US state department has said that this ruling does not mitigate the criminality why have no criminal charges being brought to bear?

    $1.9bn HSBC, money-laundering lapses
    $1.5bn UBS, Libor rigging
    $920m JPMorgan, trading scandal
    $780m UBS, aiding tax fraud
    $667m Standard Chartered, breaching sanctions
    $619m ING, breaching sanctions
    $612m RBS, Libor manipulation
    $550m Goldman, misleading investors
    $536m Credit Suisse, breaching sanctions
    $500m ABN Amro, breaching sanctions
    $451m Barclays, Libor manipulation

    How many of the individuals involved in the above have faced criminal charges?
  4. Standard member redbadger
    Suzzie says Badger
    23 Jul '14 11:05
    Originally posted by robbie carrobie
    Citigroup has agreed to pay $7 billion to settle a US government investigation into toxic mortgage-backed securities the bank sold in the run-up to the 2008 financial crisis, according to the US Justice Department.

    The settlement marks the end of months of negotiations during which the government reportedly demanded $12 billion and threatened to s ...[text shortened]... k on criminal charges of fraud or any other financially related felony? and if not, why not?
    [/b]
    same reason fred the shreds still walking the streets its called collusion.
  5. 23 Jul '14 14:53
    Originally posted by redbadger
    same reason fred the shreds still walking the streets its called collusion.
    Its like no one seems to care, seriously, this thing cost the US economy an estimated 21 trillion dollars (a trillion is a thousand billion) and they are harping on about immigration? Obama this and Obama that. Michelle Obama broke a nail last Wednesday! how bad for the US. Where are these rich mens sycophants now? where are the advocates of no government intervention now? Seriously? They are straining out the proverbial gnat and gulping down a whole heard of camels.