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| -Lurid Crime Tales- |
| Citi agrees to pay $285million after 'defrauding investors in a $1billion derivatives deal' |
| 2011-10-20 |
| [Daily Mail] Citigroup ...contributed $736,771 to the 2008 Obama campaign... Inc will pay $285 million to settle charges that it defrauded investors who bought toxic housing-related debt that the bank bet would fail, the U.S. Securities and Exchange Commission said on Wednesday. The SEC said the bank's Citigroup Global Markets unit misled investors about a $1billion collateralized debt obligation by failing to reveal it had 'significant influence' over the selection of $500million of underlying assets, and that it took a short position against those assets. It said one experienced CDO trader called the portfolio 'possibly the best short EVER!' while an experienced collateral manager said 'the portfolio is horrible.' In a statement, Citigroup ...contributed $736,771 to the 2008 Obama campaign... said the SEC did not charge the unit with any 'intentional or reckless misconduct' and that the settlement 'resolves all outstanding SEC inquiries into those activities.' The settlement is the third by the SEC against a major bank it accused of marketing a CDO without disclosing it was betting against it or allowing others to do so. The SEC has also settled cases against Goldman Sachs ...Malefactors of Great Wealth, the second most generous contributor to the 2008 Obama campaign, with a total of $1,013,091... and JPMorgan ...where we keep our plutocrats, contributed $808,799 to the 2008 Obama campaign... . |
| Posted by:Fred |
| #5 And not illegal in the US, but illegal in India. But since he is really investigating them for "donating money to Republicans", any excuse will do. |
| Posted by: Anonymoose 2011-10-20 18:00 |
| #4 Still no criminal prosecutions for fraud on a trillion dollar scale, while Eric 'Place' Holder harasses Gibson Guitars on allegations of illegal wood. |
| Posted by: Anguper Hupomosing9418 2011-10-20 14:11 |
| #3 Whatever happened to Caveat Emptor? Anyone with a basic understanding of lending risk could see CDOs were a trainwreck waiting to happen. |
| Posted by: phil_b 2011-10-20 10:42 |
| #2 "Okay, so you robbed a bank of $100,000, that the police never found, so I sentence you to pay a $28,500 fine. And don't rob any more banks, even if the government says it's okay." |
| Posted by: Anonymoose 2011-10-20 09:24 |
| #1 Who is gonna pay for when the trillions of CDO's transferred into US government guaranteed accounts, (w/ govmt collusion) collapse? Oh yeah, the taxpayers. |
| Posted by: Eohippus Phater7165 2011-10-20 08:02 |