Citigroup Said to Near Settlement of U.S. Mortgage Probe

Citigroup Inc. may reach an agreement with federal prosecutors as early as next week to resolve a probe into sales of mortgage-backed bonds before the 2008 financial crisis, a person familiar with the negotiations said.

The nation’s third-biggest bank by assets would pay at least $4 billion under an agreement with the U.S. Justice Department, according to the person, who asked not to be named because the talks are private. The deal would be $7 billion when including borrower relief such as mortgage modifications, the New York Times reported. Mark Costiglio, a spokesman for New York-based Citigroup, declined to comment on the talks.