Citigroup Settles SEC Fraud Complaint

Submitted by Chris Gaetano on Thu, 10/20/2011 - 14:28

Financial titan Citigroup has agreed to pay $285 million to the Securities and Exchange Commission, which had earlier charged the bank of hiding the true nature of risky mortgage-backed securities that it had sold to investors before the financial crisis hit its peak a few years ago, according to the New York Times. This sum includes refunds for jilted investors, who were sold mortgage-backed security-filled portfolios that Citigroup had already bet against, as well as a $95 million fine.

The Times noted that the settlement will not impact Citigroup in any large way, as the company reported on Monday that, in the third quarter alone, it earned profits of $3.8 billion on revenue of $20.8 billion.

This will be the third such case that the SEC had managed to settle, with JP Morgan Chase and Goldman Sachs having made similar settlements last year, according to the Times. However, the SEC does not intend for it to be the last: the commission on Wednesday has already brought another suit against Credit Suisse, which it said also played a role in the sale of such portfolios, said the Times.

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Submitted by Judge Rejects SEC-Citi Settlement | NYSSCPA.ORG (not verified) on Tue, 11/29/2011 - 13:01.

[...] wrongdoing, a federal judge in Manhattan on Monday rejected a $285 million settlement that had been previously agreed upon between the commission and financial giant Citigroup over alleged fraud charges related [...]

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