Citigroup Settlement, Day 2: Citigroup has agreed to pay $7 billion to settle Justice Department charges it sold mortgage-backed securities stuffed with subprime mortgages to unsuspecting investors in the years leading up to the 2008 financial crisis. About $4 billion of the penalty will go into the U.S. Treasury's general fund. The rest will be divided among other federal agencies, with about $2.5 billion directed toward homeowner relief. The deal shields the bank from any future Justice action related to collateralized debt obligations made during that same time period, many of which were also filled with subprime mortgage loans yet marketed as AAA securities. While Citi was a relatively small player in the mortgage securities market, it was a leader on Wall Street in CDOs, according to the New York Times. Citigroup and its employees could still face criminal charges, Attorney General Eric H. Holder Jr. said Monday. "The bank's misconduct was egregious," he said.