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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!