Citigroup Settlement Includes LIHTC Financing
Citigroup recently agreed to pay $7 billion in a deal with the government for misleading investors about the riskiness of mortgage-backed securities sold in the run up to the 2008 financial crisis. Citigroup, which received $45 billion in taxpayer bailouts during the 2008 financial crisis, is one of the largest banks yet to be penalized by the task force formed by President Obama to investigate the banks' packaging of mortgage securities.
The fine includes a $4 billion civil penalty, which Attorney General Eric Holder said is the largest of its kind, and $2.5 billion for "consumer relief." According to the details of the settlement, the consumer relief portion includes financing for "affordable housing developed through (the Low Income Housing Tax Credit).”