Their predatory loans contributed to the financial crisis of 2008 and many people lost their homes and their livelihood because of their mortgages. I think a 7 billion dollar settlement is fair because it pays back the DOJ and FDIC and also takes care of consumers by using some of the money to help those in foreclosure.
Citigroup's settlement agreement with the justice department may seem to be a great deal of money. The truth is that financial institutions such as Citigroup through the whole world into financial crisis, $7 billion simple does not reflect the depth of human misery caused during the financial crisis of 2008.
The Citigroup settlement is not fair entirely because they have only paid a fraction of the damage they have done. In the $7billion deal with the Justice Department, its only a fraction, but a deal nevertheless. It resolves a civil investigation that would have put many of those corporate executives behind bars, so in a way it does not seem fully justified.
The Citigroup settlement is not fair, Citigroup still retained profits of $19.3 billion in the second quarter this year. The $7 billion that they are being fined is not nearly enough to help those affected by Citigroup's action. Of the $7 billion only $2.5 billion in cash is going to help those that were affected, by the time it gets down to the individual level the amount in aid is not even close to the amount lost by those that trusted Citibank.