FDIC Announces Settlement with Citi Entities — 2014-07-14

Settlement of RMBS Claims Totals $208.2 Million The Federal Deposit Insurance Corporation (FDIC), as receiver for three failed banks, has announced a $208,250,000.00 settlement with Citigroup Global Markets Inc.; Citigroup Financial Products Inc.; CitiMortgage, Inc.; Citigroup Mortgage Loan Trust Inc.; and Citicorp Mortgage Securities, Inc. (Citi Entities) of the receiverships' federal and state securities law claims based on misrepresentations in the offering documents for 24 residential mortgage-backed securities (RMBS) purchased by the failed banks. The settlement funds will be distributed among the receiverships for the failed Citizens National Bank, Strategic Capital Bank, and Colonial Bank. As receiver for failed financial institutions, the FDIC may sue professionals and entities whose conduct resulted in losses to those institutions in order to maximize recoveries.