Citigroup, Inc (NYSE: C) entered into a $75 million settlement agreement with the Securities and Exchange Commission on Thursday in relation to a case which accused Citigroup of failing to disclose risk to the sub-prime mortgage market to investors and now Citigroup spokeswoman Shannon Bell has issued a statement responding to the settlement.
Bell commented in an emailed statement, “We are pleased that we have reached agreement with the SEC to put this matter concerning certain 2007 disclosures behind us, and that the SEC is not charging Citi or any individual with intentional or reckless misconduct. Citi settled the matter without admitting or denying the SEC’s allegations.
“Citi continues to focus on contributing to the economic recovery and generating sustained profitability for the benefit of all its shareholders. Under CEO Vikram Pandit’s leadership, we have bolstered our financial strength, overhauled our risk management, reduced our risk exposures, and made Citi a more focused enterprise by returning to banking as the core of our business.”
The SEC also singled out two Citigroup executives — Gary L. Crittenden, the former chief financial officer, and Arthur Tildesley, the former head of investor relations — for omitting material information in disclosures to shareholders. In response to the two executives names, Bell commented, “Neither Citi nor Mr. Tildesley was charged with intentional or reckless misconduct. Mr. Tildesley is a highly valued employee of Citi and is making significant contributions to the company.”
Shares of Citigroup, Inc (NYSE: C) traded down 0.36% hitting $4.11 on Friday.
