Friday, May 29, 2009

misled investors by not properly disclosing the amount of troubled mortgage assets it held as the market began to implode in 2007

TO BE NOTED: From Alphaville:

"
Citi, SEC, in talks to settle probe

Citigroup is in the early stages of negotiating with the SEC to settle an investigation into whether it misled investors by not properly disclosing the amount of troubled mortgage assets it held as the market began to implode in 2007, reports the WSJ. The talks indicate the SEC could be moving toward resolving a number of civil probes that began in late 2007, when mortgage-related losses began mounting on the books of banks and Wall Street firms. Among issues being debated at the SEC is whether Citi, as a recipient of government-rescue funds, should pay a large penalty in the case.

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