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Citi to Pay $7 Bln to Settle U.S. Mortgage Securities Probe

Citigroup has agreed to pay $7 billion to settle a U.S. investigation into shoddy mortgage-backed securities the bank sold in the run-up to the financial crisis, including the largest civil fraud penalty ever levied by the U.S. Justice Department. The settlement is more than twice what many analysts had expected but less than the $12 billion the government sought in negotiations with Citi, the third largest U.S. bank.

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