Citigroup and its shareholders may feel a multibillion-dollar government settlement has put the bank's bubble-era mortgage securities concerns behind it, but private investors' discontent with such deals is only growing.

These bondholders have been dissatisfied with most government settlements, ostensibly negotiated to resolve sellers' misrepresentations of loans in securities they bought, because the consumer relief portion may go against investors' interests — or at least may not help them directly. To boot, private investors are usually not consulted up front in negotiating the terms.

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