This article is from the archive of our partner .

Citigroup has agreed to pay $285 million to settle civil charges filed by the S.E.C. that the company deceived investors in a $1 billion deal by selling securities backed by mortgages that Citigroup bet against. The announcement comes days after Citigroup posted profits of $3.8 billion in its third quarter, a 74 percent jump from last year. "The regulator alleged that Citigroup Global Markets structured and marketed a $500 million collateralized-debt obligation that was backed by subprime loans, and then bet against those mortgage-related assets, which it didn't disclose to investors," writes The Wall Street Journal. "The $285 million settlement includes $160 million in disgorgement plus $30 million in prejudgment interest and a $95 million penalty, all of which will be returned to investors," notes the New York Times's Edward Wyatt

This article is from the archive of our partner The Wire.

We want to hear what you think about this article. Submit a letter to the editor or write to letters@theatlantic.com.