Cit­i­group to pay $75 mil­lion to set­tle claim of dup­ing in­vestors

Austin American-Statesman - - BUSINESS -

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

The Se­cu­ri­ties and Ex­change Com­mis­sion ac­cused Cit­i­group of re­peat­edly mak­ing mis­lead­ing state­ments in calls with an­a­lysts and reg­u­la­tory fil­ings about the ex­tent of its hold­ings tied to high-risk mort­gages. The bank had said the ex­po­sure was $13 bil­lion or less; the SEC said that to­tal ex­ceeded $50 bil­lion.

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