Banks Fined for Adding Pork to California's Mind-Blowing Debt
"This practice was unfair as Cal PSA's activities did not bear a direct relationship to those bond offerings and were not underwriting expenses," FINRA adds in a press release announcing the fine. The regulatory authority goes on to say that the banks did not adequately disclose the fees. In the settlement, the banks did not admit or nor deny the charges, but "consented to the entry of FINRA's findings" a press release states.
According to the terms of the settlement, Citigroup will pay the largest total penalty of roughly $1.3 million, split between $888,000 in fines and $391,106 in restitution.
For more on financial sector shenanigans, see why MBIA Executives are taking the money in case they have to run from the company .
-- Written by Antoine Gara in New York