Citigroup is scheduled to pay $7 billion in damages

By Marcina Zaccaria ,

Citigroup has agreed to pay $7 billion after facing charges involving bad mortgages. The deal was settled with the Justice Department, allowing them to avoid a civil suit.

The money includes $4 billion in penalties, and $2.5 billion in mortgage modifications.

Citigroup will take a $3.8 billion loss with the deal, although they say that “increasing pressure from regulators” was a main reason why the bank went forward with the agreement. The deal was a chance for Citigroup CEO Michael Corbat to make a statement. Corbat took the job in 2012, according to The Wall Street Journal.

"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," said Corbat, according to CNN.

Large banks like JPMorgan Chase and Bank of America had similar deals. JPMorgan Chase agreed to a settlement in November. Similarly, Bank of America agreed to a $9.5 billion settlement.

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