Citigroup to pay $2.9M to settle SEC underwriting probe

Citigroup Inc. will pay $2.9 million to settle Securities and Exchange Commission allegations that the bank’s broker had flawed processes in its accounting in underwriting of securities offerings.

The SEC alleged Tuesday that the broker didn’t keep current records on the way it accounted for expenses charged in the underwriting of securities offerings.

From 2009 to 2019, Citigroup Global Markets had no policies, procedures or review processes for how it estimated indirect expenses in underwriting offerings, the regulator said.

A spokesman for Citigroup declined to comment. The bank didn’t admit to or deny the regulator’s allegations in settling. 

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