Citigroup paying $285 million to settle SEC fraud charges 

click to enlarge (AP file photo)
  • (AP file photo)

WHAT: Citigroup has agreed to pay $285 million to settle Securities and Exchange Commission charges that it misled buyers of complex mortgage derivatives just as the housing market started to collapse.

HOW:
The big Wall Street bank allegedly made $160 million by betting for the failure of its own subprime mortgage bond packages in 2007. Meanwhile, Citi’s derivatives investors lost millions.

WHY IT’S OUTRAGEOUS: Similar market manipulation penalties were paid by Goldman Sachs ($550 million) and JPMorgan Chase ($153.6 million). Citigroup’s penalty payments will reimburse its investor losses.

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Staff Report

Staff Report

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A daily newspaper covering San Francisco, San Mateo County and serving Alameda, Marin and Santa Clara counties.
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