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Alan Gray covers a range of legal news. He is also the editor of NewsBlaze.

Citigroup Inc. is to pay a $7 billion settlement agreed with the U.S. Justice Department, to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities. This happened in the lead-up to the 2008 financial crisis. via Justice Department, Federal and State Partners Secure Record $7 Billion Global Settlement with Citigroup for Misleading Investors About Securities Containing Toxic Mortgages

Citigroup says it will take a $US3.8 billion pre-tax charge in 2014 Q2.

“The comprehensive settlement announced today with the U.S. Department of Justice, state attorneys general, and the FDIC resolves all pending civil investigations related to our legacy RMBS and CDO underwriting, structuring and issuance activities. We also have now resolved substantially all of our legacy RMBS and CDO litigation. We believe that this settlement is in the best interests of our shareholders, and allows us to move forward and to focus on the future, not the past.” – Michael Corbat, Citigroup CEO

The $7 billion consists of a civil penalty to the Justice Department, $500 million to theFDIC and several states, plus $2.5 billion for “consumer relief,” in which Citigroup will get credit for modifying mortgages for struggling homeowners and other, related actions.

This wasn’t Citi’s only problem this week. The company also reported they lost $100 million hedging against the calamity in Ukraine that never came.

In early May, Citigroup said in its first quarter 10-Q that it saw no “material impact” from escalating tensions between Ukraine and Russia, though that could change.

And there is more. CNNMoney reports that “Citi is also under investigation for possible fraud and money laundering in its Mexican unit. … All of that has been a drag on its stock.”