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Citigroup's second-quarter profit got a modest boost from Citi Holdings, a unit set up six years ago as a dumping ground for toxic assets. After losing billions for years, Citi Holdings has now become a minor profit source for its parent.
July 16 -
The acting head of New York's financial regulator has asked for details on the instant-messaging service that several large banks are developing, out of the concern that many of the same banks are under investigation for rate-rigging.
July 22 -
JPMorgan Chase has to plead guilty to an antitrust charge if it wants to resolve the Justice Department's investigation into its foreign-exchange trading activities, the company said in a regulatory filing Thursday.
May 14
Citigroup will pay $15 million to resolve Securities and Exchange Commission claims that its Global Markets unit failed to enforce policies to prevent transactions that could lead to misuse of nonpublic information.
The bank didn't review thousands of trades executed by several of its trading desks over a 10-year period, the SEC said in a statement Wednesday. The New York-based bank routed more than 467,000 transactions on behalf of advisory clients through an affiliated market maker without seeking consent.
"Firms must ensure that they have devoted sufficient attention and resources to trade surveillance and other compliance systems," Andrew Ceresney, director of the SEC's enforcement division, said in the agency's statement.
The bank has faced several SEC actions since 2003, including understating its risks to subprime mortgages in the credit crisis and misleading investors in the offering of municipal securities, according to the SEC complaint. Earlier this week, the bank agreed to pay $180 million to resolve allegations it defrauded wealthy clients in two failed hedge funds.
Scott Helfman, a Citigroup spokesman, said the bank was pleased to have resolved the matter. Citigroup, which didn't admit or deny the SEC's findings, agreed to hire a consultant to recommend improvements to its trading surveillance systems.
