Citigroup Files $68 Billion Plan After SEC Settlement

(Corrects Feb. 11 story to indicate filing isn’t part of settlement.)

Citigroup Inc., the third-biggest U.S. bank by assets, may issue as much as $68 billion of stock, bonds and other securities over the next three years, according to a filing triggered as a result of a settlement with regulators.

The bank, based in New York, registered the securities for review by the Securities and Exchange Commission in today’s filing. Under SEC rules, companies lose their ability to register securities without review if they’ve been accused of certain violations within the prior three years. Citigroup lost that privilege as the result of a settlement with the SEC last year, Shannon Bell, a bank spokeswoman, said in an e-mailed statement.

Citigroup settled claims that it failed to disclose to investors $40 billion in subprime-related holdings. The bank, led by Chief Executive Officer Vikram Pandit, agreed to pay a $75 million fine. As a result of the settlement, the bank will no longer be termed a “well-known seasoned issuer” that can register securities without review.

“Citi is filing amendments to previously filed registration statements and will file new registration statements to cover expected issuances for the next three years, to conform with SEC guidance,” Bell said. “Citi does not expect that its SEC filing status will affect its current issuance programs.”

To contact the reporters on this story: Donal Griffin in New York at dgriffin10@bloomberg.net; Bradley Keoun in New York at bkeoun@bloomberg.net.

To contact the editor responsible for this story: Rick Green at rgreen18@bloomberg.net

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