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Citigroup will pay $590 million in settlement related to financial crisis

Though the bank denies wrongdoing, this is one of the biggest settlements yet

Citigroup Inc. has agreed to pay $590 million to settle a shareholder lawsuit that accused it of hiding billions of dollars in subprime mortgage debt. The bank denied wrongdoing, instead saying the deal is "a significant step toward resolving our exposure to claims arising from the period of the financial crisis," but this is still one of the biggest settlements related to the financial crisis.

Citigroup shareholders claimed that they suffered significant losses when the bank didn’t take writedowns on collateralized debt obligations, quite a few of which were backed by subprime mortgages. The lawsuit also claims that Citigroup hid the risks.

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