Sec Probing Citigroup in $1 Billion Mortgage Deal
Reuters reported that the U.S. Securities & Exchange Commission (SEC) is investigating Citigroup’s role in a 2007 mortgage backed securities (MBS) deal. According to the article, Citigroup pushed an independent manager to put specific assets “in a collateralized debt obligation (CDO) it created in February 2007.” The deal, managed by Credit Suisse Alternative Capital, was backed by other CDOs backed by slices of subprime mortgages. Citigroup says it is cooperating with the investigation.
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