SEC Targets Citi's Subprime Mortgage Business

Law360, New York (February 25, 2011, 10:36 PM EST) -- Citigroup Inc.'s subprime mortgage-related business has become the target of a U.S. Securities and Exchange Commission investigation, according to the company's annual report filed with the agency Friday.

The SEC and other regulators are looking into the bank's mortgage-related conduct and business activities, in addition to other aspects of the business affected by the credit crisis. This includes an "ongoing inquiry" into Citigroup's structuring and sale of collateralized debt obligations, according to the filing.

Citigroup is cooperating fully with the SEC's inquiries, the company says in...
To view the full article, register now.