Citigroup settles civil fraud suit for $285M

Citigroup has agreed to pay $285 million to end Securities and Exchange Commission charges that allege the bank misled investors in a $1 billion derivatives deal connected to the housing market.

Citigroup has agreed to pay $285 million to end Securities and Exchange Commission charges that allege the bank misled investors in a $1 billion derivatives deal connected to the housing market.

The SEC voted on the deal this morning, which came on the heels of two previous controversial Wall Street payouts with Goldman Sachs and JP Morgan.

Citigroup issued the following statement about today's settlement:

“We are pleased to put this matter behind us and are focused on contributing to the economic recovery, serving our clients, and growing responsibly. Since the crisis, we have bolstered our financial strength, overhauled the risk management function, significantly reduced risk on the balance sheet, and returned to the basics of banking.”

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