Citi pays SEC $75m to clear subprime case
CITIGROUP will pay $75m (£48m) to settle charges that it failed to disclose subprime exposure to investors in 2007, the US Securities and Exchange Commission (SEC) said last night.
The SEC also charged former chief financial officer Gary Crittenden and Arthur Tildesley Jr, Citigroup’s former head of investor relations and current head of cross-marketing, making the officials among the few to face charges in the financial crisis. The pair agreed to pay a total of $180,000 to settle charges of contributing to misleading statements about the bank’s subprime exposure. The bank understated its exposure by about $40bn, the SEC said.
The SEC charged Citigroup with material omission of disclosure requirements.
Under the settlement, the bank did not admit or deny the allegations. The SEC has asked a federal judge to approve the settlement.
Citigroup said the bank was pleased that it had reached an agreement with the SEC.