Citigroup to pay $75 million for failing to disclose subprime mortgage holdings
Thursday, July 29, 2010
New York Times: “Citigroup has agreed to pay $75 million to settle federal claims that it failed to disclose vast holdings of subprime mortgage investments that crippled the bank during the financial crisis,” according to a report by Eric Dash and Louise Story. Two company executives have also been fined a total of $180,000. Dash and Story say the Securities and Exchange Commission essentially accused Citigroup of misleading its shareholders, as opposed to its customers.