Citigrouphas offered a payment of $1.125 billion in cash to settle mortgage repurchase claims based on representation and warranty breaches  on 68 private lable securitization made by 18 institutional investors represented by the law firm Gibbs & Bruns.

The settlement requires the bank to make a binding offer to the trustees (Deutsche Bank/HSBC/US Bank and Wells Fargo), offering a payment of $1.125 billion in cash and a reimbursement of any trustee expense.  The settlement offer would release Citi from having to buy back mortgages sold to the trusts.

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