Did Citi Get A Sweet Deal? Bank Claims Sec Settlement On One Cdo Clears It On All OthersQuicklink submitted by Amanda Lang Permalink
Become a Fan
|Citibank says it has settled all of its potential liability to the SEC with a $285 million payment that covers a single transaction, Class V Funding III. In announcing a case, the SEC said it had identified one low-level employee, Brian Stoker, as responsible for the bank's misconduct. It made no mention of the dozens of similar collateralized debt obligations, or CDOs, Citi sold to investors before the crash. A bank spokesman said the SEC would not be examining any of those deals. 'This means that the SEC has completed its CDO investigation(s) of Citi.' 'The $285 million settlement resolves only the Class V Funding III CDO, and we will not hesitate to bring further charges where we determine that there has been unlawful conduct,' an SEC spokesman said. Did Citi get a sweet deal? Some observers think so.|
The time limit for entering new comments on this Quicklink has expired.
This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.