Justice Department preparing to sue Citigroup

By ERIC TUCKER Published: June 13, 2014
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In brief

Citigroup will be sued

The Justice Department is finalizing a lawsuit against Citigroup over the bank’s sale of residential mortgage-backed securities after negotiations to resolve the matter broke down.

Two people with direct knowledge of the matter said Friday that negotiations between the Justice Department and the bank over a multi-billion-dollar settlement fell apart earlier this week. They said a lawsuit from the federal government could be filed as early as next week.

The people spoke on condition of anonymity because they weren’t authorized to be quoted by name when discussing a complaint that has not yet been filed.

One of the people said Citigroup, the third-largest U.S. bank, offered to pay less than $4 billion to settle the investigation, a sum substantially less than what the Justice Department is demanding.

Citigroup Inc. spokesman Mark Costiglio in New York declined to comment Friday.

Associated Press