Citi Settle $3.5bn Lawsuit, Quattrone Gives $15m To Scrutinise U.S. Justice System

Gavel

Citigroup has reached a settlement with a federal agency that had accused the bank of misleading Fannie Mae and Freddie Mac into buying $3.5bn of mortgage-backed securities.

Reuters reports that the settlement with the Federal Housing Finance Agency was disclosed in a filing on Tuesday in U.S. District Court in Manhattan, where a series of related cases by the agency against Wall Street banks are pending.

The filing did not disclose the terms of the deal.

In the meantime, The New York Post reports that Frank Quattrone - still stewing over his run-in with the feds a decade ago - has given the University of Pennsylvania $15m to put prosecutors under the microscope.

The money will establish the Quattrone Center for the Fair Administration of Justice, which will scrutinize the workings of the US justice system.

The ex-Credit Suisse banker, who attended Penn’s Wharton School of business, reaped riches during the dot-com boom before he was accused of obstructing a federal investigation by telling his employees to “clean up” their e-mails.

Citi settles U.S. suit over $3.5 billion in mortgage securities

Quattrone PA-y back

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