Citigroup Settlement Puts SEC in Double Jeopardy: Street Whispers
In dollars and cents, shareholders won a far larger settlement than the SEC in trying Citigroup's poor disclosures on grounds of fraud. Meanwhile, the SEC has answered few questions about crisis-time disclosures and done little to repay investors. Shareholders lost over $100 billion in Citigroup's near collapse. They will get less than $1 billion by way of settlements.
If there is any consolation for those looking for justice or at least a definition of justice on Wall Street, in the case of Citigroup, the SEC, Department of Justice and other regulators have other chances to try fraud and criminal charges.
In Citigroup's most recent quarterly filings with the SEC, the bank states it has set aside $4 billion for litigation ranging from mortgage security sales to a global probe on the manipulation of interest rates, which has Barclays facing a criminal probe by the DoJ.
For more on Wall Street litigation, see why Goldman Sachs faces a Bayou battle with a Louisiana pension fund.
-- Written by Antoine Gara in New York