Citigroup paying $75M to settle fraud charges

Associated Press

WASHINGTON — Banking titan Citigroup Inc. is paying $75 million to settle civil charges that it misled investors about its potential losses from subprime mortgages as the housing bust hit in 2007.

The Securities and Exchange Commission announced the settlement with Citigroup today. It says the company repeatedly made misleading statements in calls with analysts and regulatory filings about the extent of its holdings tied to high-risk mortgages.

Citigroup said that exposure was $13 billion or less, when in fact it exceeded $50 billion, the SEC said. Two former Citi executives also settled the SEC’s charges.

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