Illinois Chunk of Citigroup Settlement is $84 Million

By: AP
By: AP

CHICAGO (AP) -- Illinois' share of a roughly $7 billion federal settlement with Citigroup over risky subprime mortgages is about $84 million.

The agreement announced Monday comes weeks after talks between federal officials and Citigroup broke down, prompting the U.S. Department of Justice to warn that it would sue one of the nation's biggest banks. The settlement stems from the sale of securities made up of subprime mortgages which fueled the boom and bust that triggered the Great Recession in 2007.

Several states, including Illinois, will share in the settlement.

Illinois Attorney General Lisa Madigan told reporters in Chicago that about $40 million will go to consumer relief and about $44 million will help recover losses incurred by Illinois' pensions systems.

She says the money will provide "much-needed aid to Illinois homeowners."

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