Chuck Prince and Robert Rubin Knew About Citigroup Subprime Exposure, SEC Says (NYSE: C)

When the U.S. Securities and Exchange Commission settled with Citigroup, Inc (NYSE: C) over charges that the bank misled its shareholders, only then-CFO Gary Crittenden and investor relations-head Arthur Tildesley were charged, but a filing from the bank suggests a myriad of other executives, including Charles “Chuck” Prince and Robert Rubin were aware of the bank’s mounting subprime losses in 2007.

Crittenden and Tildesley eventually agreed to pay $100,000 and $80,000 in fines to settle charges against them individually, but neither executives admitted or denied wrongdoing in the case.

U.S. District Court Judge Ellen Huvelle rejected the U.S. Securities and Exchange Commission’s settlement offer, saying that it needed more information about why other executives weren’t being held accountable for the same or similar crimes.

Citigroup, Inc (NYSE: C) had filed a brief noting that a number of other executives had information about mounting subprime losses in 2007, according to a report from Bloomberg News, a list that includes both Charles “Chuck” Prince and Robert Rubin. Other executives that the report mentioned included former Chief Risk Officer David Bushnell, former Chief Operating Officer Robert Druskin, and several current executives including Vice Chairman Lewis Kaden, General Counsel Michael Helfer, and CFO John Gerspach.

The U.S. Securities and Exchange Commission argued that Crittenden and Tildesley were the two executives most closely associated with the misleading than the others.

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 up 0.77% on Friday, hitting $3.93 during mid-day trading.