Governance
Citigroup Inc futures tick up on turning sentiment |
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| Governance | |
| Written by Roberta Murray | |
| Tuesday, 17 August 2010 | |
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The risk-on risk-off seesaw continues to go through the motions this morning with a new found appetite for risk driving up futures.
Citigroup Inc (NYSE:C) futures are over a percentage point higher at 11.02 AM in London. Yesterday Citigroup Inc close lower by 0.26% in line with subdued markets and partly on the news that the company's $75m settlement with the SEC over its alleged failure to disclose up to $40bn in sub-prime securities has hit a snag. A federal judge refused to approve the payment from Citigroup Inc on the ground that she did not have enough enough information to 'green-light' the deal. The SEC has accused Citi of misleading investors by failing to be clear on the full extent of its exposure to low grade mortgage backed securities in conference calls in 2007. "We'll provide the court with the additional information requested," SEC spokesman Kevin Callahan said. Shannon Bell, a spokeswoman for New York-based Citigroup, said "We will answer all the judge's questions concerning this matter." When the housing bust hit in 2007 and borrowers defaulted, Citigroup's losses reached tens of billions of dollars on complex instruments linked to mortgages, pushing the bank to a financial precipice. Citigroup had said the exposure was $13 billion or less. The SEC said it exceeded $50 billion. Citigroup was one of the hardest-hit banks during the financial crisis. It received $45 billion from the $700 billion financial bailout — among the largest of the government rescues.
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