Securities Law Updates | New Releases/No Action Letters
August 3, 2010
SEC: Citigroup Inc. Gave Misleading Disclosures Regarding Its Exposure to Sub-Prime Assets
Securities and Exchange Commission v. Citigroup Inc.
Civil Action No. 1:10-CV-01277 (ESH) (D.D.C.), Litigation Release No. 21605, 7/29/2010
The Securities and Exchange Commission (“SEC,” or “Commission”) has charged Citigroup Inc. with misleading investors about the extent of the company’s exposure to sub-prime mortgage-related assets during 2007.
The SEC alleges in its complaint against Citigroup that between July 20, 2007 and November 4, 2007, in response to intense investor interest in the topic, Citigroup repeatedly made misleading statements about the extent of its holdings of assets backed by sub-prime mortgages in earnings calls and public filings. Throughout the period in question, Citigroup represented that its sub-prime exposure in Citigroup’s investment banking unit, Citi Markets & Banking, was $13 billion or…
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