Citigroup, Financial Crisis | featured news

Since the financial crisis Citigroup has managed to firm up its balance sheet and fence off most of the toxic assets that brought the bank to its knees. Some shareholders want the firm to go further though, and the latest call for a breakup comes from an unlikely source.

Citigroup said on Wednesday that it had agreed to pay $590 million to settle a class action lawsuit brought by shareholders who contended that they had been misled about the bank’s exposure to subprime mortgage debt on the eve of the financial crisis.

The Treasury Department will begin selling off the remaining 2.4 billion shares of Citigroup common stock the government holds as a result of aid provided to the bank during the financial crisis.

Wells Fargo agreed to pay $100 million to Citigroup to settle all claims related to its $15-billion deal to acquire Wachovia in the midst of the financial crisis.

The Treasury Department said Monday that it plans to sell up to 1.5 billion shares of Citigroup stock, its latest move to unwind the support it provided big banks during the financial crisis....