Citigroup News

Citigroup Settles Securities Lawsuit for $590M

Citigroup Inc. agreed to pay $590 million to settle a shareholder lawsuit accusing it of hiding tens of billions of dollars of toxic mortgage assets, one of the largest settlements stemming from the global financial crisis. The agreement resolves claims …

Former Citigroup Chief Weill Surprises with Call for Break-Up of Big Banks

Sanford “Sandy” Weill, the tycoon who built financial conglomerate Citigroup Inc. into a massive U.S. commercial and investment bank, said it is time to split up the biggest banks so they can go back to growing again. The comments were …

Citigroup CEO, Directors Sued Over Executive Pay

Days after being rebuked by shareholders, Citigroup Inc. Chief Executive Vikram Pandit and the bank’s directors have been sued by a shareholder accusing them of awarding outsized pay to top executives. The complaint, filed Thursday in Manhattan federal court, said …

Citigroup to Pay $158M in Whistleblower Fraud Claim Over Insurance for Mortgages

Citigroup Inc. has agreed to pay $158.3 million to settle U.S. civil claims that it defrauded the government into insuring thousands of risky home loans made by its CitiMortgage unit. Wednesday’s settlement resolves claims under the federal False Claims Act …

New York Presses Citi Unit on Force-Placed Insurance Probe

New York regulators urged Citigroup Inc.’s mortgage unit on Wednesday to stop resisting and comply with a subpoena related to an investigation of the force-placed insurance industry. In January, the New York Department of Financial Services issued subpoenas to roughly …

Loreley Financing Sues Citigroup Over $1 Billion Investments

Citigroup Inc. was sued for fraud by Loreley Financing over nearly $1 billion worth of collateralized debt obligations purchased in 2006 and 2007. Citigroup is accused of defrauding Loreley into purchasing “fraudulent investments that are now worthless,” Loreley said in …

Citigroup to Sell Remaining Stake in Primerica

Primerica Inc. said Citigroup had begun a public offering of its remaining stake in the life insurer, a little over a year after the company was spun-off from the bank through a public listing. Primerica, which went public in 2010 …

Judge Rejects Citigroup-SEC Mortgage Settlement; Orders Trial

A federal judge angrily threw out Citigroup Inc.’s proposed $285 million settlement over the sale of toxic mortgage debt, excoriating the top U.S. market regulator over how it reaches corporate fraud settlements. U.S. District Judge Jed Rakoff in Manhattan said …

Berkshire Joins Group Bidding for Citi Consumer Loan Unit: WSJ

Warren Buffett’s Berkshire Hathaway Inc. has joined the group bidding for Citigroup Inc.’s consumer lending unit, the Wall Street Journal said Wednesday, citing people familiar with the matter. Berkshire has joined the consortium consisting of private-equity investment firm Centerbridge Capital …

Draft Data Breach Bill Requires Quick Disclosure

Draft legislation is being circulated in Congress that would require firms to make reasonable efforts to secure customers’ personal data and to provide quick disclosures in the case of a data breach. U.S. Representative Mary Bono Mack, who has held …