Citigroup will pay U.S. regulators $75 million to settle charges that it failed to tell $40 billion in subprime exposure to investors in 2007, the Wall Street Journal reported on Thursday.Under Citigroup’s settlement, the Securities and Exchange Commission will charge the bank with material omission of disclosure requirements, but not with fraud, the newspaper said, citing people familiar with the matter.The SEC is expected to indicate that Citigroup did not intentionally mislead investors, according to the report.Citigroup failed to tell its subprime exposure in the second and third quarters of 2007, according to the settlement, the Journal reported.
Posts Tagged ‘Sec’
Citi to Settle With SEC for $75 Million
July 29th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Citi, Citigroup, Disclosure Requirements, Fraud, Investors, Omission, People, Quarters, Regulators, Sec, Securities And Exchange, Securities And Exchange Commission, Wall Street, Wall Street Journal 
Comments OffSEC probably will need to add 800 positions
July 20th, 2010 Before You Invest Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency probably will need to add 800 positions in response to regulatory reform. Schapiro told a House subcommittee that carrying out everything laid out in the bill will be “logistically challenging and extremely labor intensive.” more at http://uk.reuters.com/article/idUKN1920697920100719
Posted in Finance Fraud Tags: House Subcommittee, Mary Schapiro, Regulatory Reform, Reuters, Sec, Securities And Exchange, Securities And Exchange Commission Comments OffUBS re-Files Highland Capital CDO Case
July 2nd, 2010 Before You Invest UBS is re-filing its lawsuit against distressed hedge fund firm Highland Capital claiming the firm did the Swiss bank out of $686 million in a CDO deal. The new case, filed Monday in New York State court, is reminiscent of the SEC’s case against Goldman Sachs over a CDO deal gone terrible.
Posted in Finance Fraud Tags: 686, Cdo, Goldman Sachs, Hedge Fund, Highland Capital, Losses, New Case, New York State, New York State Court, Sec, Swiss Bank, Ubs Comments OffFabrice Tourre “categorically” denies misleading Goldman Sachs investors
April 28th, 2010 Before You Invest Fabrice Tourre, the banker at Goldman Sachs at the centre of an investigation by the Securities and Exchange Commission (SEC), has denied allegations of misleading clients.Fabrice TourreThe financial regulator charged the investment bank and its employee with fraud by failing to provide enough data to clients on a collateralized debt obligation (CDO) security.Hedge fund manager Paulson & Co took a small position against the CDO, a go which the bank is alleged to have failed to divulge.Mr Tourre, a vice-president at the bank, said before the committee: “I deny – categorically – the SEC’s allegation. And I will defend myself in court against this fake claim.”He clarified that he remembered informing ACA, one of the supposed duped investors, that Paulson was anticipating acquiring credit protection on parts of the transaction, which “necessarily meant that Paulson was expected to take some small exposure in the deal”.“The last week has been challenging for me and my family, as I have been the target of unfounded attacks on my character and motives,” the banker added.According to the SEC, Goldman Sachs received an estimated $15 billion for structuring the investment.
Posted in Finance Fraud Tags: Allegation, Allegations, Amp, Collateralized Debt Obligation, Financial Regulator, Fraud, Goldman Sachs, Hedge Fund Manager, Investment Bank, Investors, Motives, Sec, Securities And Exchange, Securities And Exchange Commission, Short Position, Target, Vice President Comments OffSEC requests Repo 105 information from major banks
April 20th, 2010 Before You Invest Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency sent letters to the 19 largest banks requesting information about Repo 105, an accounting strategy that has been blamed for the collapse of Lehman Bros. In testimony at a congressional hearing, Schapiro said the agency is looking into Lehman’s use of Repo 105.
Posted in Finance Fraud Tags: Accounting Standards Board, Banks, Ceo, Cnbc, Collapse, Financial Accounting Standards, Financial Accounting Standards Board, Information Strategy, Lawmakers, Lehman Bros, Mary Schapiro, Recollection, Richard Fuld, Sec, Securities And Exchange, Securities And Exchange Commission, Testimony Comments OffSEC moves toward tracking high-frequency firms’ trades
April 7th, 2010 Before You Invest The Securities and Exchange Commission is conducting a cost-benefit analysis of tracking transactions of high-frequency trading firms. The agency is expected to go forward with the effort, sources said. The thought is to give each firm a unique identifier that would allow the SEC to monitor traders not registered as a broker-dealer or a market maker.
Posted in Finance Fraud Tags: Authorities, Broker Dealer, Computer Code, Cost Benefit Analysis, Dark Pools, Electronic Platforms, High Frequency, High Speed, Lawyer, Naked, Sec, Securities And Exchange, Securities And Exchange Commission, Stock, Stocks, Trades, Transparency, Wsj Comments OffSEC reviews investment companies’ use of derivatives
March 27th, 2010 Before You Invest Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency is reviewing the use of derivatives. “It’s appropriate to engage in a more thorough review of the use of derivatives by [exchange-traded funds] and mutual funds given the questions surrounding the risks associated with the derivative instruments underlying many funds,” Schapiro said.
Posted in Finance Fraud Tags: Derivative Instruments, Derivatives, Exchange Traded Funds, Investment Companies, Mary Schapiro, Mutual Funds, Sec, Securities And Exchange, Securities And Exchange Commission Comments OffSEC to Roll Out New Tools Aimed at Boosting Insider Cooperation
January 17th, 2010 Before You Invest This week the Securities and Exchange Commission (SEC) announced a new set of tools at its disposal in its effort to increase enforcement. These measures pertain to whistleblowers and the like and are aimed at coercing the exchange of insider information in an attempt to strengthen the prosecution’s argument.
Posted in Finance Fraud Tags: Attempt, Cooperation Agreements, Criminal Investigations, Deferred Prosecution, Fraud, Government Prosecution, Government Prosecutors, Insider Information, Insiders, Justice Department, Mary Shapiro, Measures, New Tools, Prosecutions, Reprieve, Sec, Securities And Exchange, Securities And Exchange Commission, Subprime Mortgage Crisis, Three Tools No Comments »House Kills Amendement Aimed at Expanding FINRA’s Power
December 11th, 2009 Before You Invest The House passed an amendment killing a proposal that would have given the Securities and Exchange Commission (SEC) the power to allow the Financial Industry Regulatory Authority (FINRA) to carry out oversight on investment advisers working at broker-dealer firms. The amendment, submitted by Republican Representative Spencer Bachus, R-Alabama, was part of the Investor Protection Act of 2009.
Posted in Finance Fraud Tags: Broker Dealer, Congress, Financial Industry Regulatory Authority, Independent Broker Dealers, Investment Broker, Investment Firms, Investor Protection Act, Oversight, Power House, Proposal, Registered Investment Advisers, Republican Representative, Sec, Securities And Exchange, Securities And Exchange Commission, Spencer Bachus No Comments »SEC Alleges that Sunwest Mangement Commited Fraud
December 11th, 2009 Before You Invest U.S. regulators charged Sunwest Management and its former chief executive with securities fraud on Monday, alleging that the retirement home operator lied to investors and eventually operated the business as a kind of Ponzi scheme.The Securities and Exchange Commission accused Oregon-based Sunwest, which operates more than 200 retirement homes in the United States, and former chief executive Jon Harder of concealing the risks of investments and exposing investors to “massive losses,” Reuters said. Between 2006 and 2008, Sunwest raised at least $300 million from investors and used the funds for down payments on approximately 100 retirement homes with the balance financed by institutional lenders and banks, according to the S.E.C.’s lawsuit.Investors were told they were buying an ownership interest in a specific retirement home that would generate enough profit to pay a 10 percent annual return, and that Sunwest had a history of never missing a payment, the suit said.
Posted in Finance Fraud Tags: Banks, Chief Executive, Down Payments, Institutional Lenders, Investments, Investors, Massive Losses, Ownership Interest, Regulators, Retirement Home, Reuters, Sec, Securities And Exchange, Securities And Exchange Commission, Securities Fraud, Sunwest, United States No Comments »
