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.