DOJ Seeking More Than $10 Billion From Citigroup, Lawsuit Imminent

Tyler Durden's picture

First it was JPM and Bank of America, now it is Citigroup's turn to confirm that in the New Normal, and especially with no volume to speak of, banks are nothing but piggybank utilities for the government to extract cash from whenever it so desires. From Bloomberg:

  • U.S. SAID TO SEEK MORE THAN $10 BLN IN CITIGROUP MORTGAGE PROBE
  • U.S. PROBE RELATES TO CITIGROUP'S MORTGAGE-BOND SALES

However, Citi appears less than excited at the prospect of paying $10 billion to buy itself out of trouble. In fact, as the price of justice is being negotiated, Citi has offered only 40 cents on the dollar to tip the scales of what is right and wrong under the Eric Holder regime. Sadly for it, the government wants more:

  • CITIGROUP SAID TO HAVE OFFERED LESS THAN $4 BILLION TO SETTLE
  • U.S. SAID TO BE PREPARING LAWSUIT AGAINST CITIGROUP
  • U.S. SAID TO HAVE BROKEN OFF TALKS WITH CITIGROUP

Which means:

  • U.S. SAID TO CONSIDER FILING CITI LAWSUIT AS SOON AS NEXT WEEK

Remember that joke we made about recurring "non-recurring", legal charges and non one-time "one-time" legal fees? Yeah, so do we.

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Pinto Currency's picture

 

 

Cycle:

Fed prints money and gives to its shareholder banks.

DOJ asks for 1% back.

Everybody happy.

Kprime's picture

as things get worse they are going to have to increase the take.  Like they have done to the citizens, I expect the take to eventually exceed 60%

cifo's picture

Symbiosis is breaking down.

LawsofPhysics's picture

The moron who wrote this misses the fact that banks=goverment, what a douche.  Paper fucking promises, nothing more (fuck, central banks print 10B in a fucking day).  Remember, when fraud is the status quo, possession is the law.  All you need to know.

Iocosus's picture

Where does the settlement money go?

economics9698's picture

Yellen will be getting that call from Citi for another $10 billion added to the next fomc meeting.

nope-1004's picture

ShittyGroup = Insolvent.

 

Bay of Pigs's picture

I long for the day when these TBTF fraud ridden banks are finally plowed under.

SoilMyselfRotten's picture

Arrested or going to prison - 0

Omen IV's picture

"banks are nothing but piggybank utilities for the government to extract cash from whenever it so desires."

bullshit - Banks are a unit  of organized crime in Network "with" the government

ThroxxOfVron's picture

How often does the stolen money and ill gotten property seized from 'criminals' by .Gov end up being awarded to the victims?

So seldom that I have personally come to believe that Laws are only created and enforced as a means for the .Gov bureaucrats to steal money and seize property from...  

See, the Criminals take stuff and then that stuff is taken from the Criminals by...

& then it goes back, well; no it doesn't actually, so the victims are just....

See, um..

Oh.  Wait...

TheSecondLaw's picture

Where does the settlement money go?

Well, $9,999,400,000 of it is going where it always goes - to the war machine; and then $600 000 to Chelsea Clinton for occasional work at NBC.

Milton Waddams's picture

Make-work program. Lawyers, accountants, consultants, etc. gettin' paaaaaaaaaaaaayyy'd.

Road Hazard's picture

......and BINGO was his name! It's all a farce.

Mercury's picture

Is this for making too many loans or not enough? 

Gaius Frakkin' Baltar's picture

It's for not paying enough in the lobby.

WillyGroper's picture

Uh oh..

How much did they donate to ERIC Pac?

mayhem_korner's picture

Is this for making too many loans or not enough?

 

Yes.

Gordon Marock's picture

Just like having a Citi Rewards Card, get 1% back every time you use the card!!

Dr. Engali's picture

So we give them their share of $750 billion, trillions in back door bail outs through printing, plus they get to keep all the profits from their malfeasance Not a bad ROI. How do I get a piece of that action?

Sutton's picture

And no one ever goes to jail for the mortgage/looting of America.  And that includes the lovely Roberta Achteberg, Andrew Cuomo, Franklin Raines, Greenspan, Bernanke, on top of the the Wall Street shysters.

GoldenDonuts's picture

Hey I have a radical idea.  Why not charge the people involved and leave the share holders money alone.

LawsofPhysics's picture

Wake me when they start sending the "arsonists" (thanks timmay) to fucking prison.

ebworthen's picture

PUT THE CROOKS IN JAIL!!!

Seize Mars's picture

When they say,

DOJ Seeking More Than $10 Billion From Citigroup, Lawsuit Imminent

they mean

Spider Attempts to Feast on its Own Regurgitated Offal

mayhem_korner's picture

 

 

It's the Keynesian money multiplier hard at work.  8D

orangegeek's picture

Fucking with currency/money is what got Kennedy erased.

Seasmoke's picture

That's enough to make a wise man to take his deposits out of Citi. 

alien-IQ's picture

wake me up when one of those motherfuckers ends up in a state pen.

semperfi's picture

don't fall asleep - they might end up throwing you in the state pen for being a terrorist

kellycriterion's picture

Back in the 90's with money flying in all directions and especially into the coffers of the political having 2 infinite leverage titans in operation seemed just more gooder. Forward global banking deregulation!

Lest we forget, in Europe CDS were COUNTED AS CAPITAL.

With conditions a wee bit tighter, the separation of bosses vs under bosses will become clearer.

LawsofPhysics's picture

Indeed.  Remember when we actually sent these same bosses to fucking prison during the S&L crisis?

The earth is leveraged something like 25:1.  Collateral?  Accountability?  Moral hazard?  Terms who's true meaning has been lost with the pussification/affirmative action/"progress" of the planet.

prepare for war as there simply is no political or monetary solution to scarcity.

same as it ever was (in the big picture of human devolution)

Rainman's picture

Government and the banks are in a parasitic relationship. Nearly all the bank fines for fraud are eventually going into the US Treasury. The real victims don't get SHIT !!

http://www.alternet.org/economy/bank-fines-and-crime?page=0%2C0

sumo's picture

The sticking point in negotiations is that CIA is demanding low-cost money laundering accounts, whereas Citi is offering to trim its usual 10% per transfer only to 8%.

Citi's problem is that, if CIA gets a really low rate, all the drug cartels and Al Qaeda associates will want that rate too. Awkward.

mayhem_korner's picture

 

 

It will take 5+ years for the staged litigation to produce any yield on the $10B. 

It takes Mr. Yellen 5 days to print the same.

kowalli's picture

Mb less day to print, like 2 hours

Conax's picture

Print it up and hand it over, what's the problem?

They are endeavoring to convince us they suffer due to harsh monetary penalties when the truth is, it's just confetti.

 

semperfi's picture

haha!  criminals shaking down criminals - love it!  mafia turf war - one can only wish that they both destroy each other completely

mayhem_korner's picture

 

 

Citi:  "You think I'm funny?"

DOJ: "Just...you know, how you tell the story.  What?"

http://www.youtube.com/watch?v=0d2LAs-WL_4

Emergency Ward's picture

Competing mafia families, that's why few of them from either the crony banker or crony politician class ever goes to prison.  Sorry, Bernie Madoff, you weren't a bona fide insider or a politician and you ripped off some celebrities. 

Free Banker/Senator Corzine!

GeorgeHayduke's picture

"...banks are nothing but piggybank utilities for the government to extract cash from whenever it so desires."

Nothing like letting your asolute hatred of government blind you. How much did the Government give there poor banks in bail outs for their mortgage scams? Sorry if I'm not able to muster any tears for these poor banks who just serve as piggy banks for the mean old gubbmint.

Emergency Ward's picture

The transfer of the money by the government was a criminal conspiracy with the bankers.  I don't sympathize with either of them.  Both benefit, the serfs pay.

GeorgeHayduke's picture

It appears some folks on here can see the light.

kchrisc's picture

My summary:

DOJ wants the banksters to "print," steal, $10Bil and give to their bankrupt ass. The banksters can then later extract it from the American people via "bail-ins."

 

"There also "bailing"" required in guillotine work."

Seasmoke's picture

Where does this money Go ???.....I just read yesterday at ZH there is only $1.7T in circulation !!!!

gdpetti's picture

It goes back to the banks through all the various programs. They all work for the same 'MAN', the same national oligarchy in league with the global oligarchy... for the NWO... the GPS-global police state.

The money is just for show, as the oligarchy owns it all and thus doesn't need money, their minions do, to keep the wheels of governing the masses running smoothly.

Out of one pocket and in the other pocket... like the two political parties... two faces of the same coin... the same BEAST.

Just a question of how you like your BS... your propaganda... from the left pocket or the right.

Hmmm... let me see... so many choices.