Citigroup has agreed to pay $300 million to the Securities and Exchange Commission today to settle charges involving a mortgage deal, Bloomberg reported. UPDATE: Citi agreed to pay a $285 million settlement.
The civil fraud charges brought by the SEC reportedly involve the bank’s sale of a $1 billion mortgage-bond deal in 2007 called Class V Funding III, the Wall Street Journal reported.
As a result, the SEC launched an investigation to examine if the bank misled its investors on the CDO deal that involved risky subprime mortgages, the WSJ said.
If Citi agrees to pay $300 million, it will be one of the largest payments to SEC by a firm to settle charges, according to the WSJ.
The SEC is meeting today to agree on a settlement.