Citigroup, in JUly of this year, has also agreed to pay approximately $7 billion for its part in the financial crisis of 2008, the WSJ reports. Citigroup is accused of downplaying the risks of sub-prime mortgages when packaging them selling them to hedge funds, mutual funds and pension funds.
Under the Securities and Exchange Commission’s new “bad actor” rule, adopted last year, firms with “a relevant criminal conviction, regulatory or court order or other disqualifying event” are barred from participating in private offerings. That means that Citi isn’t allowed to sell hedge-fund or private-equity investments to high-net worth clients, although it can still arrange sales to large institutions.
At its height until the global financial crisis of 2008 Citigroup was the largest company and bank in the world by total assets. Citigroup had the world’s largest financial services network, spanning 140 countries with approximately 16,000 offices worldwide and holds over 200 million customer accounts in more than 140 countries.
Citigroup suffered huge losses during the global financial crisis of 2008 and was rescued in November 2008 in a massive stimulus package by the U.S. government.
Citigroup reported second quarter earnings per share of $0.03; $1.24, a net income of $181 million; $3.9 billion, and revenues of $19.3 billion, excluding the impact of the mortgage settlement.
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