SEC

Summary Box: Citi paying $285M to settle charges

AP News
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Posted: Oct 19, 2011 4:20 PM
Summary Box: Citi paying $285M to settle charges

CITI SETTLES CHARGES: Citigroup is paying $285 million to settle civil fraud charges of misleading buyers of a complex mortgage investment just as the housing market was starting to collapse.

INVESTORS LOST BIG: Citigroup bet against the investment in 2007 and made $160 million in fees and profits, the Securities and Exchange Commission said. Investors lost millions.

BIG PENALTY: The money will be returned to investors. The penalty is the largest involving a Wall Street firm accused of misleading investors before the financial crisis since Goldman Sachs paid $550 million to settle similar charges last year.