Citigroup Inc. has been asked by the U.S. Department of Justice to pay more than $10-billion to settle a probe into the bank’s sales of mortgage securities before the financial crisis, Bloomberg News reported on Friday.
The report, which cited a person familiar with the investigation, said that talks broke off between the bank and prosecutors on June 9.
Citigroup shares were down 1.7 per cent for the day in New York trading following the report.
A Citigroup spokesman declined to comment.
Reuters reported in December that the Justice Department was preparing a civil fraud lawsuit against the bank that alleged investors lost tens of billions of dollars on the securities at issue.
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