Citigroup Inc. and Deutsche Bank have agreed to pay $165.5 million to settle federal regulators’ claims that they misled five failed credit unions about the risk of securities tied to mortgages.
The National Credit Union Administration announced the settlements Monday over securities that the big Wall Street banks sold the five wholesale credit unions.
After the five credit unions failed in 2009 and 2010, the federal agency seized them and liquidated them. It imposed charges totaling $3.3 billion on the 7,000 or so credit unions nationwide to cover the losses from those failures.
Citigroup will pay $20.5 million, and Deutsche Bank will pay $145 million. Neither admit or deny wrongdoing.
Source: Associated Press, Nov. 14, 2011