20 Oct 2011

SEC fraud charges settled by Citigroup

9:46 am on 20 October 2011

US bank Citigroup is paying $US285 million to settle civil fraud charges from the Securities and Exchange Commission.

The SEC says Citigroup misled investors when it invited them to invest in a product based on US mortgage debt.

It argues Citigroup did not inform investors it was betting on the value of the investment falling or that it had chosen the assets itself.

Citigroup settled without admitting or denying the charges.

Credit Suisse was also involved in the the transaction and has paid $US2.5 million to settle the case, also without admitting or denying the charges.