Citibank (NYSE: C) failed to win the approval of a federal judge to pay $75 million in order to settle claims from the U.S. Securities and Exchange Commission that the New York-based bank misled investors by understating risk in certain subprime related holdings.
U.S. District Court Judge Ellen Segal Huvelle, based out of Washington, asked for additional information about the written proposal, according to Attorney Matthew Miller, who represents a Citigroup shareholder. Lawyers are expected to submit a new round of court filings beginning on September 8th.
The U.S. Securities and Exchange Commission said in its complaint that Citigroup, Inc (NYSE: C) had made misstatements on its earnings calls and in financial filings about certain assets tied to subprime loans as the housing crisis unfolded in 2007. The SEC said that some disclosures omitted more than $40 billion worth of investments.
Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.
Shares of Citigroup, Inc (NYSE: C) traded down 0.26% on Monday ending at $3.87.