Citigroup agrees mortgage settlement

<p>Citigroup has agreed a mortgage settlement deal with Freddie Mac.</p>

Citigroup has announced it has reached a mortgage settlement deal with Freddie Mac.

It was revealed by the banking company that it is set to pay $395 million (£245 million) to Freddie Mac to settle 3.7 million loans sold to the firm between 2000 and 2012.

Jane Fraser, chief executive of CitiMortgage, said in a statement that this is an "important milestone" for the remaining legacy mortgage issues at the bank.

Tom Fitzgerald, spokesman for Freddie Mac, added that the agreement was an "equitable one" and "allows both companies to move forward".

Freddie Mac lost hundreds of millions of dollars in the global recession, while other organisations such as Fannie Mae were among those to miss out.

Citigroup announced a deal in July that it will pay Fannie Mae $968 million for loans over a similar period to the ones given to Freddie Mac.

Last December saw Citigroup cut more than 10,000 jobs in a bid to save money.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.