Judge agrees to Citigroup settlement

Sept. 25, 2010 at 10:02 AM
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WASHINGTON, Sept. 25 (UPI) -- Citigroup says it will comply with the requests made by a Washington, clearing the way for a settlement with the Securities and Exchange Commission.

The SEC and Citigroup reached a $75 million settlement in the commission's lawsuit over Citi's alleged failure to disclose to investors the $40 billion holdings in subprime mortgages it held in 2007.

The Wall Street Journal said Saturday that a federal judge in Washington indicated she was satisfied with the settlement as long as a few changes were made, including requiring nearly a dozen company divisions sign off on the accuracy of Citi's earnings reports.

"We are pleased with today's hearing and will comply with the judge's request," Citigroup said in a written statement after Friday's hearing.

Although U.S. District Judge Ellen Segal Huvelle said she did not believe a settlement of $75 million would not be much of a deterrent, she said she was also deferring to the SEC on the matter.

The SEC has two weeks to have the modifications approved by the agency's commissioners.

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