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Citigroup settles $3.5bn mortgage securities lawsuit

The mortgage-fraud lawsuits filed by the agency against other against Wall Street lenders are still pending.

Citigroup Inc has settled a lawsuit filed by Federal Housing Finance Agency (FHFA), which had charged the lender of misleading Fannie Mae and Freddie Mac into purchasing mortgage-backed securities worth $3.5bn.

In 2011, the FHFA had slapped a lawsuit against Citigroup and  17  other Wall Street lenders, accusing them of misrepresenting and mis-selling more than $200bn in securities to  Federal National Mortgage Association (Fannie Mae) and  Federal Home Loan Mortgage Corp (Freddie Mac).

The settlement with the FHFA was disclosed in a filing in US District Court in Manhattan. However, the terms of the deal have not been divulged.

The mortgage-fraud lawsuits filed by the agency against other against lenders are still pending.

So far, this settlement represents the second out of 18 fraud cases filed by the agency against the lenders in 2011.

The other banks that have been slapped lawsuits include Bank of America Corp, J.P. Morgan Chase & Co.,  UBS AG, and Barclays PLC.

Although several banks have been making efforts to settle the lawsuits, most of them have not been successful.  In April 2013, a federal appeals court dismissed the arguments of UBS that the FHFA's claims should be disqualified as they were late in filing the complaint.       

These lawsuits have been one of the most stringent actions taken by the federal regulatory agency.

Following the mortgage bust, the US Treasury had to chip in to rescue Fannie and Freddie, which were pumped with over $150bn in order to stay afloat.

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We're hiring! Join the New Statesman as an editorial assistant

The NS is looking for a new recruit.

The New Statesman is hiring an editorial assistant, who will work across the website and magazine to help the office run smoothly. The ideal candidate will have excellent language skills, a passion for journalism, and the ability to work quickly and confidently under pressure.

The job is a broad one – you will need to understand the requirements of both halves of the magazine (politics and culture) as well as having an interest in the technical requirements of magazine and website production. Experience with podcasts and social media would be helpful.

The right person will have omnivorous reading habits and the ability to assimilate new topics at speed. You will be expected to help out with administration tasks around the office, so you must be willing to take direction and get involved with unglamorous tasks. There will be opportunities to write, but this will not form the main part of the job. (Our current editorial assistant is now moving on to a writing post.)

This is a full-time paid job, which would suit a recent graduate or someone who is looking for an entry into journalism. On the job training and help with career development will be offered.

Please apply with an email to Stephen Bush (Stephen. Bush @ with the subject line ‘Editorial Assistant application’.  

In your covering letter, please include a 300-word analysis of the strengths and weaknesses of the New Statesman. Please also include 500 words on what you consider to be the most interesting trend in British politics, and your CV as a Word document. 

The deadline for applications is noon on Monday 12th October.