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.
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