SEC Probes Citigroup Purchase Of Associates

Law360, New York (February 26, 2007, 12:00 AM EST) -- The U.S. Securities and Exchange Commission is taking a closer look at Citigroup Inc.’s $31 billion acquisition of Associates First Capital Corp., launching an investigation into the company’s method of accounting for tax reserves related to the merger.

The SEC has sought testimony and documents from 1997 to 2004 in relation to the probe, which seeks information about “certain specific tax reserves and releases” in conjunction to the 2000 purchase of Associates.

Citigroup disclosed the probe in an annual report filed with the agency.

Citigroup purchased...
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