The U.S. Securities and Exchange Commission charged Citigroup Inc. with misleading investors about the its exposure to subprime mortgage-related assets and hit the firm with a $75 million fine.
According to the regulator, Citigroup repeatedly made misleading statements to investors in earnings calls and public filings about the extent of its holdings of assets backed by subprime mortgages. In addition to the charges against the company, the SEC also fined former chief financial officer Gary Crittenden $100,000. Former head of investor relations Arthur Tildesley Jr., who currently leads the firm’s cross marketing department, was fined $80,000.
“Even as late as fall 2007, as the mortgage market was rapidly deteriorating, Citigroup boasted of superior risk management skills in reducing its subprime exposure to approximately $13 billion,” Robert Khuzami, the director of the SEC’s Division of Enforcement said in a statement. “The rules of financial disclosure are simple. If you choose to speak, speak in full and not in half-truths.”
As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio