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Empresas y finanzas

Citi to pay SEC $75 million: report


    NEW YORK (Reuters) - Citigroup Inc will pay U.S. regulators $75 million to settle charges that it failed to disclose $40 billion in subprime exposure to investors in 2007, the Wall Street Journal reported on Thursday.

    The settlement is part of a larger regulatory probe into subprime mortgages. Earlier this month, Goldman Sachs Group Inc agreed to pay $550 million to settle civil fraud charges over how it marketed a subprime mortgage product.

    Under Citigroup's settlement, the Securities and Exchange Commission will charge the bank with material omission of disclosure requirements, but not with fraud, the newspaper said, citing people familiar with the matter.

    The SEC is expected to indicate that Citigroup did not intentionally mislead investors, according to the report.

    Citigroup failed to disclose its subprime exposure in the second and third quarters of 2007, according to the settlement, the Journal reported.

    Citigroup spokesman Jon Diat declined to comment on Thursday.

    Shares of Citigroup were up 1 cent at $4.10 in afternoon New York Stock Exchange trading.

    (Reporting by Maria Aspan, Editing by Leslie Gevirtz)