U.S. judge gives nod to Citigroup Inc (NYSE:C) $730 million bondholder settlement


Dallas, Texas 08/29/2013 (Financialstrend) – A federal judge has given nod to a settlement in which Citigroup Inc (NYSE:C) has decided to make a payment of around $730 million to the bondholders in order to settle down claims that the banking institution hid its exposure to hoards of dollars of toxic mortgage assets before the financial disaster.

U.S. District Judge Sidney Stein in Manhattan sanctioned the arrangement on Tuesday, less than 3 weeks after giving nod to a related $590 million settlement for Citigroup stockholders.

Attorneys for the bondholders stated that the latest settlement is the second biggest recovery in securities class-action lawsuit ever brought on behalf of bond capitalists.

Citigroup sheds 150 jobs in Fort Mill

Citigroup stated that it is discontinuing 150 jobs at its Fort Mill, S.C., operation, for around 17% of the people hired there.

The country’s 3rd biggest loaner by assets hires 900 at the Fort Mill office located at 605 Munn Road.

The annihilated posts were in mortgage loss alleviation, Citi added. Generally, lenders have such processes to work with householders whose mortgages have become troubled. In a few cases, that leads to a lower mortgage sum.

NY-based Citi stated that the layoffs are part of a companywide cost-cutting proposal declared during the month of December. In that declaration, Citi stated that it proposed to cut 11,000 jobs internationally.

The company’s Fort Mill declaration comes as lenders countrywide are cutting down their mortgage-linked workforce as fewer home loans are becoming troubled and fewer homeowners are refinancing regardless of higher rates of interest.

Citigroup Increases Note Buyback Offer to $3.55 Bln

The company said that it has augmented its buyback of notes to $3.55 billion as part of its continuing attempts to augment its funding as well as capital structure.

The offers valued at $3.07 bln when they first started two weeks back.