The U.S. Justice Department has reportedly asked Citigroup for over $10 billion in order to settle a mortgage-backed bonds investigation, according to a Bloomberg report.
Prosecutors called of discussions with the lender on June 9, Bloomberg reports, and are preparing a suit after Citi "offered less than $4 billion to resolve the matter." A personal familiar with the matter told Bloomberg that the Justice Department's lawsuit could be filed this week.
The federal probe of Citi is into the sale of mortgage-backed bonds leading up to the financial crisis. There are at least seven other banks currently investigated by the Justice Department for "misleading investors about the quality of bonds backed by mortgages as housing prices plummeted," according to Bloomberg.
Citigroup stock dropped over half of a percent on news of the Justice Department's request.