Citi has offered the settlement to the 68 Citi-sponsored
mortgage securitization trusts that participated in the $59.4
billion residential mortgage-backed securities.
Separately, the institutional investors have asked the trusts to
accept the offer, which they have till June 30 to accept.
Established by Citi's legacy securities and banking business
during 2005-2008, these residential mortgage-backed security
trusts were represented and warranted by Citi affiliates.
The settlement, the latest among a series of similar deals in
the recent past, comes as the U.S. banking industry tries to
manage its way out of the housing bubble that led to the
Last year, a federal judge approved a settlement in which Citi
agreed to pay bondholders $730 million to resolve claims that
the bank concealed its exposure to billions of dollars of toxic
mortgage assets prior to the financial crisis.
Citigroup stock closed down about 1.2 percent at $46.55 on the
New York Stock Exchange on Monday.
(Reporting by Avik Das and Shubhankar Chakravorty in Bangalore;
editing by Ken Wills)
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