Judge to approve $75M Citigroup settlement once bank adds assurances against future actionsBy AP
Friday, September 24, 2010
Judge ready to approve $75M Citigroup settlement
WASHINGTON — A federal judge says she plans to approve the government’s $75 million settlement with Citigroup Inc. over charges it misled investors about billions in potential losses from subprime mortgages.
U.S. District Court Judge Ellen Segal Huvelle said she first wants assurances that Citigroup will maintain new policies it adopted to ensure it will avoid such violations in the future.
Huvelle said Friday she could approve the settlement in a few weeks.
Citigroup and the Securities and Exchange Commission, which brought the charges, agreed to add such assurances to the settlement.
The SEC had accused Citibank of making misleading statements about its holdings tied to high-risk mortgages. Citigroup had said it was $13 billion or less; the SEC said it exceeded $50 billion.
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