Citigroup subpoenaed in mortgage securities probe

Fri Feb 24, 2012 10:33pm IST

A Citibank sign is seen outside of a bank outlet in New York March 4, 2009. REUTERS/Lucas Jackson/Files

A Citibank sign is seen outside of a bank outlet in New York March 4, 2009.

Credit: Reuters/Lucas Jackson/Files

Related Topics

Stocks

   

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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage