Citigroup has received a $1.25m fine for failing to report over 90,000 loans to federal government in the US. The investment bank’s CitiFinancial unit is accused by authorities in 35 states of not disclosing 91,127 loans originating between 2004 and 2007.According to the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, the subsidiary of the group has agreed to pay the full fine.An internal system error was blamed for the failure of Citigroup to make the authorities aware of the loans.Steven Antonakes, Massachusetts’ commissioner of banks, was quoted by Reuters as saying: “HMDA remains the primary tool we use to ensure compliance with honest lending laws and regulations.“By failing to accurately report all required transactions, CitiFinancial hampered our ability to complete that assessment.”The investment banking group clarified that the error was an unintentional mistake and no customers had been harmed.Lenders must inform the authorities of the number of loans they provide as part of the government’s Home Mortgage Disclosure Act.Banking regulators in Massachusetts were the first to learn the error by the group.
Posts Tagged ‘Investment Banking Group’
Citigroup fined $1.25m for loan reporting mistakes
March 28th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: 25m, Authorities, Citifinancial, Citigroup, Conference Of State Bank Supervisors, Federal Government, Hmda, Home Mortgage Disclosure, Home Mortgage Disclosure Act, Internal System Error, Investment Bank, Investment Banking Group, Laws And Regulations, Lenders, Massachusetts Commissioner, Regulators, Residential Mortgage, Reuters, State Bank, State Bank Supervisors 
Comments OffCitigroup plans to sell hedge fund business
February 26th, 2010 Before You Invest Citigroup is in talks with SkyBridge Capital to sell its hedge fund business worth $4 billion.An unnamed source told the Wall Street Journal that the investment banking group is thought to be in “advanced talks” with the organisation, which is run by two former traders from Goldman Sachs.Assets in the fund include $2.5 billion which Citi advises on, $500 million in capital tied to hedge fund stakes and $1 billion worth of hedge fund investments.Details of the deal, including how much SkyBridge would be willing to pay, have yet to be told, the news provider reported.Citigroup announced during 2009 that it would be looking to offload $715 billion worth of assets in a bid to reduce its exposure to risk and the bank is thought to still have more than $500 billion to shift.According to the news provider, Citigroup has sold a number of assets including stakes in the Japan-based Nikko Cordial securities and Nikko asset-management businesses.The sale of its Smith Barney brokerage business and consumer finance businesses in Portugal, Italy and Norway have also taken place as the bank attempts to recover in the wake of the global financial crisis.Fund-of-fund investments in Citigroup increased in 2009 by more than 20 per cent, the news provider stated.
Posted in Finance Fraud Tags: 1 Billion, Asset Management, Assets, Brokerage Business, Business Worth, Citigroup, Consumer Finance, Crisis Fund, Finance Businesses, Fund Business, Fund Investments, Global Financial Crisis, Goldman Sachs, Hedge Fund, Investment Banking Group, Nikko, Smith Barney, Unnamed Source, Wall Street, Wall Street Journal Comments Off
