Citigroup, Goldman, UBS in US$235m US mortgage settlement

[NEW YORK] Citigroup, Goldman Sachs Group and UBS have agreed to pay US$235 million to settle US litigation accusing them of concealing the risks of mortgage securities sold by the former Residential Capital before the global financial crisis.

The preliminary, all-cash settlement was made public on Friday in filings with the US District Court in Manhattan. It requires court approval and is separate from a US$100 million accord reached in 2013 with ResCap entities and individuals.

Investors accused the banks of violating federal securities law by issuing materially false and misleading registration statements and prospectuses for offerings they underwrote.

REUTERS