California will get a nearly $200 million bite out of a $7 billion national settlement with Citigroup over mortgage-backed securities the bank sold before the financial crisis.
Part of the settlement includes $102,700,000 in damages that will reimburse the state pension funds, CalPERS and CalSTRS, Attorney General Kamala D. Harris announced on Monday.
California is also guaranteed at least $90 million in consumer relief.
“Citigroup misled consumers and profited by providing California’s pension funds with incomplete information about mortgage investments,” Harris said in a news release. “This settlement holds Citi accountable and compensates the state’s pension funds that protect the retirement savings of hard working Californians.”
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As part of the settlement, Citigroup acknowledged that it misled the public and investors about its mortgage-backed securities.
The global bank was assessed a $4 billion penalty, the largest to date. It is also required to provide $2.5 billion of relief nationwide to consumers in the form of principal forgiveness, loan modifications, donations to housing and legal assistance nonprofits and efforts to reduce blight.