Citigroup May Need to Pay More to Keep SEC Accord, Attorneys Say
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Citigroup Inc. may have to pay more than its proposed $285 million settlement with U.S. regulators over a collapsed collateralized debt obligation to satisfy a judge that the accord is fair, said lawyers following the case.
Citigroup, the third-biggest U.S. lender, agreed last month to settle a claim by the Securities and Exchange Commission that it misled investors in a $1 billion CDO linked to subprime residential mortgage securities. Investors lost about $700 million, according to the agency.