Citigroup Hit with Material Omission of Disclosure Requirements by the SEC
The "news" part of this isn't that Citi "forgot" to disclose its subprime exposure and got hit with an SEC fine but that they laid down and took it like the good little bitches they are.
Citigroup Inc (C.N) will pay U.S. regulators $75 million to settle charges that it failed to disclose $40 billion in subprime exposure to investors in 2007, the U.S. Securities and Exchange Commission said on Thursday.
The settlement is part of a larger regulatory probe into subprime mortgages. Earlier this month, Goldman Sachs Group Inc (GS.N) agreed to pay $550 million to settle civil fraud charges over how it marketed a subprime mortgage product.
Under Citigroup's settlement, the SEC charged the bank with material omission of disclosure requirements. Citigroup did not admit or deny the allegations under the settlement.
Catch that, future fraudsters? $40 billion in material omissions will get you a $75 million fine. Peanuts.