Citigroup Reaches a $285 Million Settlement with the SEC

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.