"The judge, Ellen S. Huvelle of the District of Columbia, proved to be a sympathetic ear. This week, Huvelle ordered the SEC to file a memo by Sept. 8 providing detailed answers to a litany of questions challenging the SEC’s handling of the case, many of which echoed Lerner’s objections.
The SEC accused Citigroup of committing negligent -- not intentional -- fraud when it told investors in 2007 that its risk of losses on subprime mortgages was $43 billion less than it actually was. (Negligent fraud: Now there’s an oxymoron.) The SEC proposed a $75 million fine, which would be borne by Citigroup shareholders. Those include the U.S. Treasury, which still owns an 18 percent stake in the twice-bailed-out bank."
No comments:
Post a Comment