Citigroup Flat After Settlement (NYSE:C)

Citigroup Inc. (NYSE:C) shares are hanging in there above 4 bucks today after news of a lawsuit settlement agreement was in the works.  Nothing like failing to provide all the details to investors…  Citigroup got busted on $40B in subprime loans that it did not disclose.

Citigroup shares are trading at $4.12, up 0.73% or $0.03 and volume is currently at 305.45M shares traded.  Over the past 12 months Citigroup Inc (C) shares have traded between a 52-week low of $2.95 and its 52-week high of $5.43.

MarketWatch tells us that Citigroup Inc. agreed on Thursday to pay $75 million to settle a lawsuit brought by the Securities and Exchange Commission that the bank failed to disclose $40 billion in subprime exposure to investors.

Citigroup's former chief financial officer Gary Crittenden agreed to pay $100,000 as part of the settlement. Arthur Tildesley, a former head of investor relations at the mega-bank, agreed to pay $80,000.

"The rules of financial disclosure are simple -- if you choose to speak, speak in full and not in half-truths," said Robert Khuzami, Director of the SEC's Division of Enforcement.

According to the SEC's complaint, Citigroup said in earnings calls and public filings between July and October 2007 that it had subprime mortgage security exposure of $13 billion or less. However, according to the SEC, Citigroup omitted two categories of subprime securities, representing $40 billion in additional subprime mortgage exposure. Citigroup later disclosed these additional securities in November 2007.

According to the SEC's order, Crittenden and Tildesley were "repeatedly" provided with information about the full extent of Citigroup's subprime exposure.

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