Citigroup settles CDO charges for $285 million


Citigroup is to pay $285 million to settle charges brought by the US Securities and Exchange Commission (SEC).

The charges relate to a $1 billion collateralised debt obligation (CDO) that Citigroup's principal US broker-dealer subsidiary marketed to investors. Without investors' knowledge, Citigroup Global Markets had taken a short position against the CDO, meaning that when it failed investors lost almost all of their investment while Citigroup made $160 million in fees and trading profits.


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Investment banks: the future of risk control

This survey report explores the current state of risk controls in investment banks, the challenges of effective engagement across the three lines of defence, and the opportunity to develop a more dynamic approach to first-line risk control

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