Citi and Deutsche to Pay $165 Million in Mortgage Penalties

    2
    362

    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

    Previous article60 Minutes’ Congressional Insider Trading Report vs. Financial Reform
    Next article41% say American Dream is Lost: Survey
    Chuck Epstein has managed marketing communications and public relations departments for major global financial institutions and participated in the launch of industry-changing financial products. He also has written by-lined articles for over 50 publications, five books and served as editor and publisher of nation’s first newsletter on the topic of using the PC for personal investing and trading. (“Investing Online, 1994-1999). He also is a marketing consultant, writer and speaker on topics related to investor protection and opportunities in the very dynamic cannabis industry. He has held senior-level marketing, PR and communications positions at the New York Futures Exchange, Chicago Mercantile Exchange, Lind-Waldock, Zacks Investment Research, Russell Investments and Principal Financial. He has won national awards from the Mutual Fund Education Alliance (MFEA) and his web site, www.mutualfundreform.com, was named best small blog in 2009 by the Society of American Business Editors and Writers (SABEW).

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here