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Citi, Deutsche Bank paying $165.5M to settle federal claims on sales of mortgage securities
WASHINGTON (AP) ' Citigroup Inc. and Deutsche Bank are agreeing to pay a total of $165.5 million to settle federal regulators' claims that they misled five failed credit unions about the risk of securities tied to mortgages.
The National Credit Union Administration announced settlements Monday with the big Wall Street banks over the securities they sold the five wholesale credit unions. The federal agency seized the credit unions in 2009 and 2010, and liquidated them. It imposed charges totaling $3.3 billion on the 7,000 or so U.S. credit unions to cover the losses from the those failures.
Citigroup will pay $20.5 million, and Deutsche Bank will pay $145 million. Neither admit or deny wrongdoing. The NCUA also has made similar allegations against JPMorgan, Goldman Sachs and Royal Bank of Scotland.