How Much Was Citigroup Fined For Misleading Customers with its Mortgage Securities?

The department of justice has struck again, this time imposing a $7 billion fine on Citigroup Inc. (NYSE:C) as a charge on the bank being found liable of  misleading customers with its mortgage securities during the peak of the economic crisis. Despite receiving the huge fine from the Department of Justice, Citigroup which is one of the biggest banks in the World was still able to beat estimates with its second-quarter earnings, posting a profit of $1.24 per share for the quarter.

Largest Financial Services Companies

Despite the unending tussle with the Department of Justice over its mortgage practices, Citigroup Inc. (NYSE:C) was able to generate revenue of nearly $19.4 billion against estimates of $18.8 billion. Citigroup is not the only bank that has been under the scrutiny from regulators over illegal mortgage lending practices, JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo &Co (NYSE:WFC) and Bank of America Corp (NYSE:BAC) have also found themselves in the same troubles.

FBR Capital Markets managing director, Paul Miller, has told Fox Business that despite the numerous challenges that Citigroup Inc. (NYSE:C) faced in the quarter, they put-out a decent number in terms of earnings. Focus now shifts to Bank of America, which, Miller believes, could experience a huge fine of up to $13 billion.

Citigroup Inc. (NYSE:C) soared on the announcement of the solid results that beat estimates with Mr. Miller saying the fine could be the bulk of it, seen by the fact that company stock soared on the announcement of the solid results. Citigroup is required to pay $4 billion of the $7 Billion fine in cash “It wasn’t that much, just $7 billion it is really four and half billion in cash, so it gets a big chunk behind them” said Mr. Miller

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!