Citigroup has agreed to pay $1.66bn to Enron’s creditors to settle two of the biggest remaining claims over its role in the Houston energy trader’s 2001 collapse.

The agreement will bring Citi closer to ending its long-running exposure to Enron, although the bank still faces several smaller claims. However, the close of the Enron chapter comes as Citi faces mounting woes from the current credit crunch.