Citigroup Faces Hearing on Proposed SEC Subprime Settlement

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Citigroup Inc. faces a Sept. 24 court hearing on a proposed $75 million settlement with the U.S. Securities and Exchange Commission over claims the bank misled investors by failing to disclose $40 billion in subprime-related holdings.

U.S. District Judge Ellen Huvelle in Washington was initially dissatisfied with the written proposal and had sought more information before approving the accord. She set a second hearing for Sept. 24.