Citi settles SEC charges over bad controls, supervision
Reuters
Published Aug 16, 2018 12:00PM ET
Citi settles SEC charges over bad controls, supervision
WASHINGTON (Reuters) - Citigroup (NYSE:C) agreed to pay $10.5 million to settle two separate complaints, one relating to bad loans made by its Mexican subsidiary, Banamex, between 2008 and 2014, U.S. regulators said on Thursday.
The other concerned a trader mismarking illiquid positions and unauthorized proprietary trading by Citigroup Global Markets Inc (CGMI) from 2013 to 2016, the Securities and Exchange Commission said.
"Fraudulently-induced loans" made by Banamex to Oceanografia that led to $475 million in losses were the result of inadequate controls that prevented them from registering 'numerous red flags' in the borrower's documents," the SEC said in a statement.
The regulator also said inadequate supervision allowed CGMI traders to mismark illiquid positions and cover up $81 million in losses.
"We are pleased to have these matters resolved," Danielle Romero-Apsilos, a spokeswoman for Citi Global said in an email.
Citigroup and CGMI settled the allegations without admitting or denying the SEC's findings.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.