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Partner Thomas J. Perrelli has released the first report as independent monitor to determine Citigroup Inc.’s compliance with consumer relief obligations, valued at $2.5 billion, under its settlement with the U.S. Department of Justice and five states. As described in the report, the settlement resolved possible federal and state legal claims for violations of law regarding the packaging, marketing, sale, structuring, arrangement and issuance of residential mortgage-backed securities and collateralized debt obligations between 2006 and 2007.
The purpose of the report is to inform the public of Citigroup’s obligations under the settlement, and to provide the first interim report on Citigroup’s progress toward fully meeting those obligations. To these ends, the report includes:
The monitor’s next report to the public on Citigroup’s consumer relief activity will be issued in the Spring 2015.
ABOUT THE CITIGROUP MONITORSHIP
In July 2014, the U.S. Department of Justice, along with the states of California, Delaware, Illinois, New York and the Commonwealth of Massachusetts, reached a settlement with Citigroup Inc., resolving potential federal and state legal claims for violations of law regarding the packaging, marketing, sale, structuring, arrangement and issuance of residential mortgage-backed securities and collateralized debt obligations between 2006 and 2007. As part of the $7 billion settlement, Citigroup agreed to provide consumer relief that would be valued at $2.5 billion under the principles set forth in the settlement, to be overseen by an independent monitor, Jenner & Block Partner Thomas J. Perrelli. Beginning in 2015, Mr. Perrelli will issue public reports on a quarterly basis on Citi’s progress toward fully meeting its obligations by the end of 2018, as the settlement requires.