REUTERS-
Citigroup Inc has reached a $590 million settlement of litigation accusing the bank of fraudulently concealing tens of billions of dollars of exposure to risky collateralized debt obligations heading into the global financial meltdown.
The settlement is one of the largest arising from the 2007-2008 crisis. It resolves claims that Citigroup failed to take timely writedowns on the CDOs, many of which were backed by subprime mortgages, and that shareholders suffered billions of dollars of losses once the risks were realized.
Citigroup in a statement called the accord “a significant step toward resolving our exposure to claims arising from the period of the financial crisis.” It said the $590 million is covered by existing litigation reserves.
[REUTERS]
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