Wall Street

Citigroup Settles With SEC

It probably isn't enough to appease the protesters, but Citigroup will pay $285 million to settle charges brought by the Securities and Exchange Commission that it defrauded investors. The SEC accused Citigroup of selling $1 billion in assets backed by toxic housing-related debt, and then betting that the financial instruments would fail. When the debt obligations defaulted less than nine months after they closed, investors were left with losses while Citigroup made $160 million in fees and profits. Citigroup did not have to admit wrongdoing as part of the settlement.