Federal Judge Ellen Segal Huvelle said that she would “ultimately approve” Citigroup, Inc (NYSE: C)’s $75 million settlement with the U.S. Securities and Exchange Commission after both sides would agree to add changes related to the bank’s disclosure policies.
The judge, who had originally questioned the deal, said that she was satisfied with the agreement and would approve the deal once remedial steps were taken by the bank, including that a number of executives sign off on the accuracy of statements and scripts about earnings.
Citigroup responded to the news in a statement, with a spokesperson saying, “We are pleased with today’s hearing and will comply with the judge’s request.” SEC attorney Erica Williams said that the agency would need approval for the modified settlement and asked for two weeks to obtain approval.
Judge Huvelle said that the $75 million fee won’t be much deterrence and instead pushed for remedial steps which would include structural changes for the bank to disclose bonuses and loses to its shareholders.
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 2.74% during mid-day trading on Monday.
