Mortgage news

News, trends and analysis of the mortgage and credit market

Sunday, August 3, 2008

Citigroup under fraud probe




August 03 2008 Best-Mortgage-Companies.com
New York state Attorney General Friday August 01, 2008 that his office intends to file charges against Citigroup for alleged fraudulent marketing and sale of troubled auction-rate securities to unsuspecting investors.
The nation's largest bank may have repeatedly and persistently committed fraud by material misrepresentations and omissions in the underwriting, distribution and sale of auction rate securities, touting them as safe investments.
The Attorney General also claimed that Citigroup destroyed recordings of telephone conversations related to the marketing and sale of auction-rate securities.
Auction-rate securities are long-term bonds that hospitals, cities and corporations sell at weekly or monthly auctions, which many investors, until now, had treated like cash investments. The market for these investments is worth about $330 billion.
 Read 
 more 

Best Rated Mortgage Companies

Email this article to a friend | Subscribe to our Mortgage News

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home