Forum Post: BREAKING NEWS: NY TIMES reports that Citibank Agrees to Pay COD Mortgage Investor $285 Million for Deception -- Disgorging Profits & Paying Penalty; Credit Suisse Pays and Gold Too -- Still NO MONEY for TOXIC Mortgage Home Owners
Posted 2 years ago on Oct. 19, 2011, 7:54 p.m. EST by FedWallFedWellFedUP
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The New York Times is reporting that the SEC has just settled with Citigroup for created Mortgage Market CDO -- luring investors to buy it then betting against the same package it created -- knowing that it would fail. According to NY TIMES -- Citigroup received fees of $34 million for structuring and marketing the transaction and realized net profits of at least $126 million from its short position. The $285 million settlement includes $160 million in disgorgement plus $30 million in prejudgment interest and a $95 million penalty, all of which will be returned to investors.