Citi Settles FHFA's Suit Over $3.5B in MBS Sales

Law360, New York (May 28, 2013, 8:33 PM EDT) -- Citigroup Inc. settled a suit Tuesday filed by the Federal Housing Finance Agency accusing it of misguiding Fannie Mae and Freddie Mac into buying $3.5 billion worth of risky mortgage-backed securities.

Citigroup and the agency said in a stipulation of voluntary dismissal filed in New York federal court that they had settled the dispute, though the filing did not disclose the terms of the settlement. Citigroup spokeswoman Danielle Romero told Law360 on Tuesday that the terms of the settlement were confidential. The firm’s statement said only...
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