Citi Shares Respond Amid Report of $4B Payment to Settle Mortgage Concerns
Shares of Citi (NYSE: C) gained 0.9 percent in after-hours trading Tuesday after Dow Jones reported the company and the U.S. Justice Department are near an accord where the bank would pay more than $4 billion to settle allegations it sold bad mortgages in the run-up to the 2008 financial crisis.
The bank and Justice Department are finalizing details of an agreement, Dow Jones reported, citing people familiar with the matter it didn't identify. The agreement, which would avoid a federal lawsuit over the mortgages, may be announced as early as next week, Dow Jones reported.
The two sides had been far apart as recently as mid-June, according to the news service. Citicorp had offered about $4 billion while the Justice Department sought close to $10 billion, Dow Jones said.
Citi shares are up to $47.83 after closing at $47.42.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.