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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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Fri, 06/13/2014 - 11:02 | 4852868 Pinto Currency
Pinto Currency's picture

 

 

Cycle:

Fed prints money and gives to its shareholder banks.

DOJ asks for 1% back.

Everybody happy.

Fri, 06/13/2014 - 11:06 | 4852898 Kprime
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%

Fri, 06/13/2014 - 11:08 | 4852902 Winston Churchill
Winston Churchill's picture

Canalblism is good.

Fri, 06/13/2014 - 11:16 | 4852959 cifo
cifo's picture

Symbiosis is breaking down.

Fri, 06/13/2014 - 11:33 | 4852998 LawsofPhysics
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.

Fri, 06/13/2014 - 11:33 | 4853064 Iocosus
Iocosus's picture

Where does the settlement money go?

Fri, 06/13/2014 - 11:41 | 4853108 economics9698
economics9698's picture

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

Fri, 06/13/2014 - 12:11 | 4853328 nope-1004
nope-1004's picture

ShittyGroup = Insolvent.

 

Fri, 06/13/2014 - 12:32 | 4853506 Bay of Pigs
Bay of Pigs's picture

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

Fri, 06/13/2014 - 14:06 | 4854171 SoilMyselfRotten
SoilMyselfRotten's picture

Arrested or going to prison - 0

Fri, 06/13/2014 - 11:51 | 4853187 Omen IV
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

Fri, 06/13/2014 - 14:52 | 4854371 ThroxxOfVron
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...

Fri, 06/13/2014 - 17:09 | 4854887 TheSecondLaw
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.

Fri, 06/13/2014 - 12:28 | 4853462 Milton Waddams
Milton Waddams's picture

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

Fri, 06/13/2014 - 14:11 | 4854202 Road Hazard
Road Hazard's picture

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

Fri, 06/13/2014 - 17:41 | 4854995 venturen
venturen's picture

I AM NOT HAPPY!

Fri, 06/13/2014 - 11:06 | 4852901 Mercury
Mercury's picture

Is this for making too many loans or not enough? 

Fri, 06/13/2014 - 11:08 | 4852906 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

It's for not paying enough in the lobby.

Fri, 06/13/2014 - 11:41 | 4853107 WillyGroper
WillyGroper's picture

Uh oh..

How much did they donate to ERIC Pac?

Fri, 06/13/2014 - 11:29 | 4853038 mayhem_korner
mayhem_korner's picture

Is this for making too many loans or not enough?

 

Yes.

Fri, 06/13/2014 - 11:07 | 4852903 Gordon Marock
Gordon Marock's picture

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

Fri, 06/13/2014 - 11:09 | 4852909 Dr. Engali
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?

Fri, 06/13/2014 - 11:11 | 4852923 Sutton
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.

Fri, 06/13/2014 - 11:11 | 4852925 GoldenDonuts
GoldenDonuts's picture

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

Fri, 06/13/2014 - 11:12 | 4852930 LawsofPhysics
LawsofPhysics's picture

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

Fri, 06/13/2014 - 11:13 | 4852944 ebworthen
ebworthen's picture

PUT THE CROOKS IN JAIL!!!

Fri, 06/13/2014 - 11:14 | 4852949 Seize Mars
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

Fri, 06/13/2014 - 11:27 | 4853025 mayhem_korner
mayhem_korner's picture

 

 

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

Fri, 06/13/2014 - 11:18 | 4852976 orangegeek
orangegeek's picture

Fucking with currency/money is what got Kennedy erased.

Fri, 06/13/2014 - 11:19 | 4852978 Seasmoke
Seasmoke's picture

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

Fri, 06/13/2014 - 11:20 | 4852984 breakyoself
breakyoself's picture

break 'em!

Fri, 06/13/2014 - 11:20 | 4852986 alien-IQ
alien-IQ's picture

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

Fri, 06/13/2014 - 11:31 | 4853053 semperfi
semperfi's picture

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

Fri, 06/13/2014 - 11:21 | 4852993 kellycriterion
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.

Fri, 06/13/2014 - 11:32 | 4853017 LawsofPhysics
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)

Fri, 06/13/2014 - 11:23 | 4853000 rtalcott
Fri, 06/13/2014 - 11:22 | 4853003 Rainman
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

Fri, 06/13/2014 - 11:24 | 4853013 sumo
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.

Fri, 06/13/2014 - 11:25 | 4853016 mayhem_korner
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.

Fri, 06/13/2014 - 11:38 | 4853096 kowalli
kowalli's picture

Mb less day to print, like 2 hours

Fri, 06/13/2014 - 11:27 | 4853030 Conax
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.

 

Fri, 06/13/2014 - 11:29 | 4853036 semperfi
semperfi's picture

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

Fri, 06/13/2014 - 11:33 | 4853067 mayhem_korner
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

Fri, 06/13/2014 - 11:44 | 4853087 Emergency Ward
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!

Fri, 06/13/2014 - 11:29 | 4853041 GeorgeHayduke
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.

Fri, 06/13/2014 - 11:59 | 4853178 Emergency Ward
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.

Fri, 06/13/2014 - 12:11 | 4853326 GeorgeHayduke
GeorgeHayduke's picture

It appears some folks on here can see the light.

Fri, 06/13/2014 - 11:33 | 4853061 kchrisc
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."

Fri, 06/13/2014 - 11:33 | 4853066 Seasmoke
Seasmoke's picture

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

Fri, 06/13/2014 - 12:22 | 4853422 gdpetti
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.

Fri, 06/13/2014 - 11:36 | 4853073 kowalli
kowalli's picture

 

Fri, 06/13/2014 - 11:38 | 4853098 GrinandBearit
GrinandBearit's picture

DOJ is owned by the banksters. 

No one ever goes to jail.  

All banksters need to be hanged.

Fri, 06/13/2014 - 11:40 | 4853099 disabledvet
disabledvet's picture

Ummm..."Citi threatens Federal Government with trillion dollar loss of funding for anything other than a debt monetization scheme."

Fri, 06/13/2014 - 11:43 | 4853117 Chupacabra-322
Chupacabra-322's picture

Only 10 Billion? That's chump chage to these Criminals.

Fri, 06/13/2014 - 11:50 | 4853169 JailBanksters
JailBanksters's picture

Maybe the DOJ should have a plaque made with:

Give me control of a nation's money and I care not who makes it's laws.

Obviously they have no Idea, and won't make any difference on the size of these speeding fine.

 

Fri, 06/13/2014 - 11:50 | 4853171 bwh1214
bwh1214's picture

Can anyone explain how I have a mortgage with JPM Chase from 2005 and one with Bank of America from 2009 and have not received my check in the mail from these settlements. I have another with Citi from 2010 but I'm sure I will not see a dime of that back either, I don't want them to be punished I want compensation if they committed fraud. I think these are just repayments, saying thank you to the federal Govt for QE and other handouts. If that weren't the case why aren't we hearing about the checks arriving to the people that were apparently defrauded.

Fri, 06/13/2014 - 12:11 | 4853313 Ban KKiller
Ban KKiller's picture

Well...fuck the banksters. But, I am glad they are so greedy and just plain lazy asses. Why? Because of the way they secuitized mortgages it allowed me to challenge the debt as to the true owner/holder/beneficiary. Of course the bank, in my case First Horizon Home Loans, serviced by Nationtar Mortgage, LLC (both criminal acts of the highest order especialy Nationstar owned by hedge fund Fortress Investment Group (fuck you dumb asses too!) an up and comer in the servicing racket). So when none of these folks could validate the debt I quit paying and asked them to foreclose as then someone whould have to come forward with a claim. They, First Horizon when earlier they admitted to selling the note, submitted a forged note (as it had NO indorsement on it. The copy of the note obtained from the idiot servicers, Nationstar, showed an indorsement from when First Horizon sold the note to Freddie Mac) into open court! Three years later and I am still living in my home for only insurance, taxes and upkeep. First Horizon has been exposed trying to claim they never sold the note. Idiots, THANK YOU! 

For those with an interest look at BONY v. Romero New Mexico Supreme Court Decision. Deadly against the banksters!

 

Fri, 06/13/2014 - 12:37 | 4853531 Frilton Miedman
Frilton Miedman's picture

 

 

Perhaps, in the age Of Antonin Scalia's newly revised Constitution, Citi can argue that the DOJ is taking $10 billion worth of "free speech" from a corporate "person" and is therefore unconstitutional.

Fri, 06/13/2014 - 12:47 | 4853607 swass
swass's picture

I'm glad the Federal government has found a way to monitize the DOJ and use it as a revenue machine.

Fri, 06/13/2014 - 12:58 | 4853673 Chuck Knoblauch
Chuck Knoblauch's picture

Artificial demand for U.S. currency helps the Fed dump Treasuries.

Masturbating it's way to recovery?

hehehe .............

$10 billion takes care of one month of QE.

This addict is hungry for a QE fix real bad.

Fri, 06/13/2014 - 13:10 | 4853783 swass
swass's picture

Yeah, except this is just in addition to the QE, not a replacement for it.

Love the name, by the way!

https://www.youtube.com/watch?v=h-X5qz7RawY&feature=kp (@ 2:16)

Fri, 06/13/2014 - 16:06 | 4854662 Dadburnitpa
Dadburnitpa's picture

The government already has enough play money, why don't they just put some of these guys in federal prision where they can get ass raped a couple of times a week for five or six years.

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