Judge approves Citi's $75M settlement with SEC

AP News
Posted: Oct 19, 2010 3:49 PM
Judge approves Citi's $75M settlement with SEC

A federal judge has approved the government's $75 million settlement with Citigroup Inc. over charges it misled investors about billions in potential losses from risky mortgages.

U.S. District Judge Ellen Segal Huvelle filed the settlement Tuesday. She approved it only after Citigroup pledged in the agreement to maintain new policies it adopted to avoid similar violations in the future.

The Securities and Exchange Commission had accused Citigroup of making misleading statements regarding its exposure to risky assets tied to subprime mortgages. Citigroup had said the holdings were $13 billion or less; the SEC said they exceeded $50 billion.

The $75 million that Citigroup is paying represents only about 0.35 percent of its $20.7 billion in revenue in the third quarter of this year.