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SEC Seeks To Settle Citi CDO Probe

The Securities and Exchange Commission is seeking a settlement with Citigroup of more than $200 million.

The Securities and Exchange Commission is seeking a settlement with Citigroup of more than $200 million, The Wall Street Journal reports. The securities regulator is in advanced discussions with the lender to settle civil charges related to a $1 billion mortgage-bond deal created by Citi in 2007.

SEC officials are assessing what was revealed to investors in the Citi deal, a collateralized debt obligation (CDO) created from other CDOs backed by subprime mortgages. The SEC is seeking a parallel settlement with Credit Suisse Group, which was collateral manager on the issue.

Click here for the story from The Wall Street Journal.

Click here for additional coverage from Financial Times.

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