Citigroup announces FX settlements
- Citi announced that it has entered into settlements with the United States Department of Justice (DOJ) and the Board of Governors of the Federal Reserve System (Fed) to resolve investigations into Citi's foreign exchange business.
- The settlement with the DOJ includes a guilty plea by Citicorp, a subsidiary of Citigroup Inc., to a violation of the Sherman Antitrust Act and fine of $925 million.
- The settlement with the Fed includes the entry of a cease and desist order and a civil money penalty of $342 million.
- Citi also announced that it has reached a separate agreement to settle related private U.S. class action claims for a payment of $394 million, subject to court approval.
- Citi expects to maintain its licenses and does not expect a material impact on its operations or ability to serve its clients.
- The payments required by each of the settlements Citi announced today are covered by existing legal reserves and will not require a charge to earnings in the second quarter of 2015.