Citigroup Said to Face $10 Billion Request in U.S. Talks

The U.S. Justice Department has asked Citigroup Inc. for more than $10 billion to settle a probe into the lender’s sale of mortgage-backed bonds before the 2008 financial crisis, a person familiar with the negotiations said.

Prosecutors broke off talks with Citigroup on June 9 and are preparing to sue the New York-based bank after it offered less than $4 billion to resolve the matter, said the person, who asked not to be named because the discussions are confidential. The Justice Department could file a lawsuit as early as next week, according to the person, who also said the bank’s offer included about $1 billion in cash and the rest in consumer relief.