ALBANY, N.Y. (AP) — New York is poised to receive $92 million in cash and at least $90 million in consumer relief as part of a $7 billion national settlement with Citigroup for its handling of risky subprime mortgages that contributed to the national financial crisis in 2008.
In the settlement, the bank has acknowledged misrepresenting residential mortgage-backed securities that were toxic and led to both the housing boom and bust that triggered the Great Recession.
New York Attorney General Eric Schneiderman says the settlement contains a statement of facts where Citigroup acknowledges that, contrary to what it told investors at the time, it securitized and sold securities with underlying mortgage loans that it knew had material defects.
