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Citigroup Reaches $7 Billion Mortgage-Bond Settlement

Citigroup Inc. agreed to pay $7 billion in fines and consumer relief to resolve government claims that it misled investors about the quality of mortgage-backed bonds sold before the 2008 financial crisis.

The bank took a $3.7 billion charge in the second quarter ended June 30 to cover the cost of the settlement, the New York-based firm said today in a statement. Citigroup climbed 3.6 percent to $48.68 at 11:46 a.m. in New York, the best performance among 84 companies in the Standard & Poor’s 500 Financials Index.