Judge approves Citigroup's $730M settlement with bondholders
Bank accused of concealing toxic mortgage assets
A federal judge approved a settlement that requires Citigroup (C) to pay bondholders $730 million to resolve claims that the bank concealed its exposures to billions of dollars of toxic mortgage assets prior to the financial crisis, Reuters reported. The publication elaborated on the settlement this week, saying:
U.S. District Judge Sidney Stein in Manhattan approved the settlement on Tuesday, less than three weeks after approving a similar $590 million settlement for Citigroup shareholders.
Stein said the latest settlement resolves claims by investors who bought Citigroup bonds in 48 offerings between May 2006 and August 2008.