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.

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

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