DON'T FEEL BAD ABOUT A 590 MILLION DOLLAR SETTLEMENT WITH CITIGROUP

By
Real Estate Mortgage Broker with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Don’t Feel Bad About a 590 Million Dollar Settlement with Citigroup”

They made plenty of profit on these loans, I mean lots of money. The frustrating part, is the settlement is going to stockholders, not the individuals that were harmed by the subprime loan that they bought into.

Yes, I know there is 26 billion dollar settlement with folks that were harmed by subprime loans and part of the settlement was with CitiBank.

Citigroup settlementThese investors that won this settlement, made an investment that didn’t work out. I wonder if we should start an action to get back any money we lost on any investment we ever made.

Citigroup Will Pay $590 Million to Settle Subprime Claims

By: Paul Muolo

Citigroup late Wednesday disclosed that it will pay $590 million to settle a class action civil suit brought by investors seeking damages from the bank’s exposure to subprime mortgages.

Among other things, investors accused the top ranked mortgage lender/servicer of failing to disclose important details about its investments in subprime MBS and related securities, including CDOs.

The settlement covers Citigroup shareholders who bought stock in the bank from February 2007 to April 2008.

In 2007, a Citigroup affiliate called CitiFinancial out of Baltimore was a top 10 ranked subprime lender, according to figures compiled by National Mortgage News and the Quarterly Data Report.

In 2007 Citigroup’s investment banking division was one of the largest securitizers of subprime loans in the nation. Its strategy entailed taking A- to D loans from its own CitiFinancial affiliate and other firms and packing these nonprime mortgages into bonds.

In some cases Citigroup invested in its own MBS.

According to the law suit, investors accused the bank of concealing its “failure to write down securities tied to subprime debt.”

In a press statement Citigroup said it denies the allegations but is settling the case to avoid prolonged litigation.

image: digitalart/freedigitalphotos.net

Posted by

Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

Like me on facebookfollow me on twitterConnect with me on linkedin

Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the chair to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
Connecticut
Groups:
Wake Up Brokers
Connecticut Professionals
LOAN OFFICERS WHO AREA SERIOUS ABOUT MAKING MORE MONEY
Mortgage Brokers Loan Placement
All About Mortgages/Mortgage Networking
Tags:
stockholders
bank
class action civil suit
mortgage
citigroup
subprime mortgage

Comments 10 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Ambassador
1,704,040
George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Joe, I never feel sorry for anyone that gets caught for doing something wrong.  I feel sorry for the rest of us that end up feeling the backlash from this stuff, because of the black eye that the industry gets.

August 31, 2012 03:27 PM
Rainmaker
971,016
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty
Definitely, Joe. I want to start a class action law suit for some stock I bought at the top of the market for oil wells in Australia and then they hot natural gas. No wait, the company is bankrupt! Lol
August 31, 2012 03:57 PM
Rainmaker
1,574,649
Lou Ludwig
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO
Ludwig & Associates

Joe

Citigroup does not deserve the settle, they originated the mortgages, sold that mortgages and get paid to service the mortgage. They were not warehousing and did not own the mortgages when they went bad.

Just more tax payers hard earned money being wasted.

Good luck and success.

Lou Ludwig

August 31, 2012 05:21 PM
Rainmaker
521,162
Patricia Feager, MBA, GRI, Cert Negotiations Expert, Military Relo Prof
The Little REALTOR® That Could
Keller Williams Realty

Hi Joe,

On one hand, I'd love to know that anyone who got involved with subprime loans could be compensated for their losses and emotional distress; but then again, if that did happen (which I'm sure it never will) can you imagine how many other lawsuits would follow? There would be such a domino effect. Suddenly, everybody would be suing everybody. The state of the economy would be out of control.

In some ways, it reminds me of a drug that was approved by the FDA and some people swore by it; others died. Rather than figure out what the problem was, they took the drug off the market. The company decided it would be cheaper to take the drug off the market than to try to figure out all the various combinations of other drugs people were on, or what other types of problems did the patient have when they started the drug therapy. So they decided to take the PRODUCT off the market. When the PRODUCT (like subprime) is gone, the problem will eventually go away and nobody has to know about it or get compensated either - right?

Those are my early morning thoughts... Thanks for stimulating my brain this morning. My coffee maker broke so I really needed to read this one!

September 01, 2012 03:50 AM
Rainmaker
917,060
Conrad Allen
Webster, Ma, Realtor
Re/Max Professional Asociates

Hi Joe.  Does that equal one months net income?  Way too lenient.

September 01, 2012 04:32 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the eye to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
778,682

Joe Petrowsky

Your Mortgage Consultant for Life
What mortgage questions can I answer for you
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the computer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: