WASHINGTON (AP) — The government is defending as "fair and adequate" its $75 million settlement with Citigroup Inc. over charges it misled investors about billions in potential losses from subprime mortgages.
The Securities and Exchange Commission made its case in a filing Wednesday to a federal judge, who said last month she was "baffled" by the proposed settlement and wasn't ready to approve it. The SEC said the $75 million penalty is "fair, adequate, reasonable and in the public interest."
The SEC announced the settlement in July. The agency had accused Citigroup of repeatedly making misleading statements about the extent of its holdings tied to high-risk mortgages. Citigroup had said the exposure was $13 billion or less; the SEC said it exceeded $50 billion.
