WASHINGTON (AP) — Citigroup and Deutsche Bank have agreed to pay a total of $165.5 million to settle federal regulators’ claims that they had misled five failed credit unions about the risk of securities tied to mortgages.þþThe National Credit Union Administration announced the settlements Monday over securities that the big Wall Street banks sold the five wholesale credit unions.þþAfter those credit unions failed in 2009 and 2010, the federal agency seized and liquidated them. It imposed charges totaling $3.3 billion on the 7,000 or so credit unions nationwide to cover the losses from the failures.þþCitigroup will pay $20.5 million, and Deutsche Bank will pay $145 million. The companies neither admitted nor denied any wrongdoing in the matter.þþThe settlements are the latest involving the role of big Wall Street banks before the financial crisis erupted in late 2008.þþCitigroup agreed last month to pay $285 million to settle civil fraud charges by the Securities and Exchange Commission that it had misled buyers of a complex mortgage investment just as the housing market was starting to collapse in 2007.þþGoldman Sachs paid a record $550 million to settle similar S.E.C. charges last year.
Source: NY Times
