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  • Bad News for Citigroup Inc. (NYSE:C) - Settlement with SEC Rejected

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    Tuesday August 17, 2010 at09:21 am EST
     
    Citigroup Inc. (NYSE:C) Settlement with SEC Rejected by Judge - Asks for More Information
     
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    A federal judge on Monday rejected the $75 million settlement between the SEC and Citigroup Inc. (NYSE:C) which is the second incidence of rejecting a settlement lately after  the rejection of Bank of America's  $33 million settlement with SEC where BAC was accused of misleading the shareholders during its purchase of Merrill Lynch. Judge Ellen S. Huvelle of the U.S. District Court for the District of Columbia was not happy with SEC's investigation into Citigroup Inc. (NYSE:C), and the basis of deciding the amount of penalty.
    She had issues with SEC who charged only two executives . Huvelle demanded more information from SEC and Citigroup Inc. before the next hearing in late September.

    The settlement was announced on July 29. The agency had accused Citigroup  Inc. of repeatedly making misleading statements in calls with analysts and regulatory filings about its involvement in high-risk mortgages.  SEC spokesman Kevin Callahan said "We'll provide the court with the additional information requested,". While Citigroup Spokesman Shannon Bell said "We will answer all the judge's questions concerning this matter."
    Citigroup states that the exposure was $13 billion or less while SEC believes it exceeded $50 billion. 

    Citigroup Inc. (NYSE:C) Shares closed at $3.87 on Monday Which is near support level of $3.95. 
    Resistance levels above - $4.08 and $4.22
    Support Levels - $3.73 and $3.42.

    Shares of Citigroup Inc (NYSE:C) are expected to drop on Tuesday following this news. Click Here for other stocks to Watch Today. Citi has been trying to stabilize itself and repay the Federal Debt as early as possible. Recently Citigroup Inc.(NYSE:C) Signed a deal with Apple iAd for Mobile Advertizing. Earlier it positioned to sell Egg, Its Online Banking in UK to get rid of its non-core business.



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