Business & Real Estate

CalPERS gets $88 million in Citi settlement

CalPERS said Thursday it has collected $88 million from a previously-announced settlement with Citigroup Inc. over toxic mortgage securities.

“The settlement was a significant victory for CalPERS and for all investors who relied on statements made by Citigroup,” said the pension fund’s chief executive, Anne Stausboll, in a prepared statement.

In July, state officials said they would receive a $200 million share of a $7 billion nationwide settlement announced by Citigroup. The agreement stems from Citi’s marketing of flawed mortgage-backed securities to investors.

At the time, state officials said CalPERS and the teachers’ pension fund, CalSTRS, would get a total of $102.7 million, or about half of the state’s settlement. But it wasn’t known until Thursday how the two pension funds would split the money.

Thursday’s announcement came a month after CalPERS said it would get up to $250 million from Bank of America in a similar settlement.

  Comments