Citigroup Reportedly Paying $300 Million To Settle Suit Over Mortgage Bond Sale

Vikram Pandit

Photo: AP

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.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.