SEC: Citigroup Execs Lied

Former heads knew of losses, SEC claims
By Emily Rauhala,  Newser Staff
Posted Sep 10, 2010 6:48 AM CDT
SEC: Citigroup Execs Lied
Um, Mr. Prince, I believe your pants are on fire.   (AP Photo/J. Scott Applewhite)

Citigroup's top brass lied about their knowledge of the firm's subprime losses, the SEC alleges. Court fillings from the SEC suggest former chief executive Charles 'Chuck' Prince and former senior adviser Robert Rubin were well aware that the highest-rated segments of subprime mortgage-backed securities were the source of $200 million in losses in October 2007, even though they denied it at the time, reports TheStreet. The firm went on to receive $45 billion in bailout funds.

In July, Citigroup agreed to pay a $75 million regulatory fine for misleading investors; the judge approving the settlement asked the SEC last month to look into who knew what. The revelation may lead the judge to ask why the agency didn't bring claims against more Citigroup execs.
(More Citigroup stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.