A federal judge approved Citigroup Inc.'s revised pact with federal securities regulators to resolve allegations the bank misled investors about $39 billion in subprime mortgage assets it held.
Judge Ellen Segal Huvelle signaled last month she would approve a revised deal, which imposes additional governance standards and disclosure policies on Citigroup's earnings releases.
Under the new pact with the Securities and Exchange Commission, Citigroup will still pay the originally agreed upon $75 million fine. It also agreed to maintain disclosure and earnings committees for three years. Executives, including the bank's chief executive and chief financial officers, would also be required to sign statements attesting to the accuracy of earnings statements and scripts used in earnings conference calls.
Any changes to the bank's disclosure policies would have to be approved by an independent consultant who has SEC approval.
The judge had said she struggled to find the fairness of the original pact. She said she didn't think a $75 million penalty alone, particularly for a large financial institution, would deter others from misleading investors.