Citi settles suit over $3.5B in mortgage securities

Reuters4:41 p.m. CDT, May 28, 2013

Citigroup Inc. has reached a settlement in a suit involving $3.5 billion of mortgage-backed securities, a court filing said Tuesday.

The deal with the Federal Housing Finance Agency, which accused the bank of misleading Fannie Mae and Freddie Mac into buying the securities, was disclosed in a filing in U.S. District Court in Manhattan, where a series of related cases by the agency against Wall Street banks are pending.
Terms were not disclosed.

The accord marks the second of 18 securities fraud cases the FHFA filed against banks in 2011 over more than $200 billion in mortgage-backed securities sold to Fannie and Freddie.
　
　
　
http://www.chicagotribune.com/business/breaking/chi-citi-fhfa-mortgage-securities-20130528,0,3407901.story