The Bottom Line: Citigroup settlement
Updated: Tuesday, July 15 2014, 11:23 AM EDT
ALBANY -- The federal government has reached a $7-billion settlement deal with Citigroup for its role in causing the 2008 financial crisis, and hundreds of millions of that money is coming to New York State.
U.S. Attorney General Eric Holder says Citigroup sold faulty mortgage-backed securities to investors, leading to the mortgage meltdown.
Under the deal reached, Citigroup will pay a record $4-billion penalty to the U.S. Justice Department.
It will also pay $2.5-billion in consumer relief, and another $500-million to states and the FDIC.
Of the total $7-billion settlement, $182-million will be coming to New York.
New York State Attorney General Eric Schneiderman says that's $92-million in cash to the state, plus another $90-million in consumer relief.
The Bottom Line on what that money will mean for New York consumers -- principal forgiveness on some mortgages, refinancing available at lower interest rates, and financial assistance for some down payments and closing costs.
The A.G.'s office tells CBS 6's Dori Marlin, it's one of the "biggest victories for holding those who caused the financial crisis accountable."