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Citigroup Nears $7 Billion Deal to Resolve Mortgage Probe

WSJ - The Justice Department and Citigroup Inc. are close to a deal for the bank to pay about $7 billion to settle allegations it sold shoddy mortgages in the run-up to the financial crisis, according to people familiar with the matter... The potential settlement marks a reversal from mid-June, when the Justice Department had warned that it planned to file a lawsuit unless Citigroup significantly raised its settlement offer... the total penalty would probably be a combination of cash, which would come from legal reserves, and "consumer relief," in which the bank would take actions like modifying mortgages for some homeowners.

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