Citigroup Inc. (C) and U.S. authorities will announce a $7 billion agreement as soon as today to end probes of the bank’s sales of mortgage-backed bonds, according to a person with direct knowledge of the matter.
The deal, signed over the weekend, requires the firm to pay $4 billion to the Justice Department, about $300 million to state attorneys general and about $200 million to the Federal Deposit Insurance Corp., and to provide $2.5 billion in relief for consumers, the person said, asking not to be named because the talks are private. The settlement includes a statement of facts, outlining the allegations, the person said.
