The Citigroup fines are said to have surprised stock analysts and people inside the bank, who had hoped to settle for less.Citigroup will pay $7 billion to settle an investigation into risky subprime mortgages, the type that helped fuel the financial crisis. Following the decision for consumer relief, the bank reported a stronger than predicted quarterly profit, and saw its share price rise by 3.02% to $48.42 (£28.34).Citigroup's chief executive, Michael L Corbat, said,"We believe that this settlement is in the best interests of our shareholders, and allows us to move forward and to focus on the future, not the past." Investors seem to be happy with that decision because stock price rose.The bank offered to pay less than $4billion to resolve the investigation. In reaction to it the justice department warned last month that it would sue the bank for offering less than what government was seeking.The bank will take a pre-tax charge of about $3.8 billion because of the settlement during its second quarter.Citigroup said Monday that its net income dropped in the second quarter after the settlement was arranged. That charge pushed down Citigroup's net income to $181 million from $4.18 billion a year earlier.On a per-share basis, net income was 3 cents, compared with $1.34 in the second-quarter a year earlier. Excluding the charges and an accounting gain, the bank's second-quarter profit rose 1 percent to $3.93 billion, or $1.24 a share.The bank earned $3.89 billion, or $1.25 per share, a year earlier. Revenue was $19.4 billion, excluding the accounting gain, compared with $20 billion a year earlier.Adeal between the Justice Department and JPMorgan Chase & Co., the nation's biggest bank was similar to this settlement, but it's much larger than this.After months of negotiations, the bank last year agreed to pay $13 billion after an investigation into toxic mortgage-backed securities..