Citigroup settles charges over misleading investors
Citigroup agreed to pay a 75-million-dollar fine to settle charges it misled investors
WASHINGTON (AFP) – US bank Citigroup agreed Thursday to pay a 75-million-dollar fine to settle charges it misled investors about exposure to subprime mortgage-related assets, the Securities and Exchange Commission said.
Citigroup “repeatedly made misleading statements in earnings calls and public filings about the extent of its holdings of assets backed by subprime mortgages,” the SEC said in a statement.
During the home mortgage crisis in 2007, Citigroup claimed that subprime exposure in its investment banking unit was 13 billion dollars or less, when in fact it was more than 50 billion dollars, the statement said.
Citigroup, as well as one current and one former bank executive charged for their roles in making the misleading statements, “agreed to settle the SEC’s charges,” the commission said.
The bank agreed to pay a 75-million-dollar penalty, while ex-chief financial officer Gary Crittenden agreed to pay 100,000 dollars, and ex-head of investor relations Arthur Tildesley, now head of cross marketing at Citigroup, agreed to pay 80,000 dollars.
just what goes up, must come down?