SEC: Citigroup to Pay $285 Million to Settle CDO Fraud Charges, Total Monetary Recoveries Equal $1.8B

Source: SEC pdf
On October 19, the SEC said they will receive $285 million from Citigroup. Below is some LOL text from the SEC release. According to this SEC chart, the SEC has been paid $1.881 billion so far from banks settling CDO fraud charges (or related).

"According to the SEC’s complaints, the Class V III transaction closed on Feb. 28, 2007. One experienced CDO trader characterized the Class V III portfolio in an e-mail as “dogsh!t” and “possibly the best short EVER!” An experienced collateral manager commented that “the portfolio is horrible.” On Nov. 7, 2007, a credit rating agency downgraded every tranche of Class V III, and on Nov. 19, 2007, Class V III was declared to be in an Event of Default. The approximately 15 investors in the Class V III transaction lost virtually their entire investments while Citigroup received fees of approximately $34 million for structuring and marketing the transaction and additionally realized net profits of at least $126 million from its short position."

Citigroup to Pay $285 Million to Settle SEC Charges for Misleading Investors About CDO Tied to Housing Market (, 10/19/2011)

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