PEANUTS

This is the morality of the marketplace: NO ONE GOES TO JAIL

Citigroup in $590 Million Settlement of Subprime Lawsuit
By JESSICA SILVER-GREENBERG
August 29, 2012, 1:23 pm

Citigroup said on Wednesday that it had agreed to pay $590 million to settle a class-action lawsuit brought by shareholders who contended that they had been misled about the bank’s exposure to subprime mortgage debt on the eve of the financial crisis.

The shareholder lawsuit, originally filed in November 2007, contended that the bank and some of its former senior executives and directors had failed to disclose the bank’s huge holdings in securities known as collateralized debt obligations that were tied to mortgage securities until November 2007, when it took a multibillion-dollar write-down on them. Citigroup later wrote down the C.D.O.’s by tens of billions of dollars more.