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Citigroup in $590 Million Settlement of Subprime Lawsuit

Foreclosure

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.

 

Insight: Wells Fargo's mushrooming mortgage risk

Wells Fargo

The new center of U.S. mortgage lending is a nondescript office building in the American heartland, far from the California subprime lenders and the New York investment banks that drove the housing market into a bust.

 

Justice Department presses Wells Fargo on loans: source

Wells Fargo & Co and the Department of Justice are negotiating to settle allegations that the bank illegally targeted African-Americans for expensive subprime loans, according to a source familiar with the matter.

 

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