WSJ:Citigroup, Justice Department Plan Settlement Talks Over Mortgage Securities

(RTTNews) - Citigroup Inc. (C) and the Justice Department reportedly plan to meet next month in the opening salvo of multibillion-dollar settlement talks over mortgage-backed securities.

The Wall Street Journal stated that the scheduled meeting will be the first chance for each side to put a number on a potential settlement, citing people familiar with the matter, but in the past such numbers have been far apart, representing little more than starting negotiating positions.

The Justice Department has not yet floated a number with the bank--which has already settled several other mortgage-related lawsuits--but an agreement could tally in the billions of dollars.

The discussions, which center on the bank's sale of residential mortgage-backed securities, are part of a continuing push by the Justice Department to bring big banks to heel for activities that regulators and law enforcement believe contributed to the 2008 financial crisis.

The Wall Street Journal reported earlier this month that the Justice Department and Bank of America Corp. are also in multibillion-dollar settlement discussions over that firm's role in securitizing mortgages.