What California gets from Citigroup's $7B mortgage crisis payout

NEW YORK, NY - DECEMBER 05: A 'Citi' sign is displayed near Citibank headquarters in Manhattan on December 5, 2012 in New York City. Citigroup Inc. today announced it was laying off 11,000 workers, about 4 percent of its workforce, in a move to slash costs. (Photo by Mario Tama/Getty Images)

Citigroup announced today it will pay $7 billion for its role in the lead up the financial crisis. Andrew Grossman with the Wall Street Journal explains what California consumers will get out of the deal.

Citigroup announced today it will pay $7 billion for its role in the lead up the financial crisis.

In a settlement deal with the federal government, the company will avoid a lengthy investigation into how it allegedly misled investors over mortgage-backed securities. Many of those mortgages were placed on homes here in Southern California, but most of those went sour.

Out of that money, $4 billion will go to the Department of Justice, $500 million to state attorneys general and $2.5 billion in consumer relief.

Andrew Grossman with the Wall Street Journal joins Take Two with more details of the settlement and what exactly California consumers will get out of the deal.