Citigroup pays to settle subprime claims

Citigroup logoWithout admitting guilt, Citigroup will pay $75 million to settle federal civil claims that it failed to disclose vast holdings of subprime mortgage investments that crippled the bank during the financial crisis.  Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Federal Reserve Board of Governors, says it’s pretty thin gruel for the government to take back $75 million from a bank in which it alaready owns a controlling interest since bailing it out.

“More meaningful from a policy perspective would be the clawing back of the obscene sums paid to the likes of Robert Rubin for his negligent oversight of the institution.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

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