Citigroup subpoenaed in mortgage securities probe
REUTERS - Citigroup said on Friday it received a subpoena from federal and state regulators seeking information about the bank's "issuing, sponsoring, or underwriting" of mortgage-backed securities.
The inquiries included a subpoena from the civil division of the U.S. Department of Justice, which Citigroup received on January 27, it said in its annual report.
That same day Attorney General Eric Holder said the department had issued civil subpoenas to 11 financial institutions as part of a new effort to investigate misconduct in the packaging and sale of home loans to investors.
Citigroup is among the first institution to disclose it received one of the subpoenas.
Bank of America (BAC.N), for example, said in its annual filing released on Thursday it "received a number of subpoenas" from regulators and other authorities about the bank's underwriting and issuance of mortgage-backed securities, but did not specifically disclose any subpoena from the DOJ.
Citigroup said the requests for information came from state and federal regulators, including the Securities and Exchange Commission.
(Reporting By Aruna Viswanatha in Washington, D.C., Jonathan Stempel in New York and Rick Rothacker in Charlotte; Editing by Phil Berlowitz)
- Tweet this
- Share this
- Digg this
- Search for Malaysia Airlines jet refocuses on drone scans of seafloor
- India passes halfway mark in election with BJP gaining strength
- Borno state authorities say most of abducted schoolgirls still missing
- RPT-Reports of e-cigarette injury jump amid rising popularity, U.S. data show
- Founder of scandal-hit drugmaker Servier dies at 92
Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier. Full Article | Full Coverage