Citigroup Officials Dodge Charges Over Mortgage-Backed Securities Fraud
US authorities have backed off on pursuing criminal charges against Citigroup executives who packaged and sold mortgage-backed securities during the 2008 crisis.
The decision, unearthed by a Freedom of Information Act request, followed Citigroup’s $7B settlement over civil claims over MBS fraud allegations, Reuters reports.
The news is the first public acknowledgement by federal officials that major bank execs wouldn't face criminal charges over their creation of toxic MBS.
The decision not to pursue criminal charges came from a lack of evidence, according to a report by the Federal Housing Finance Agency's Office of Inspector General.
Citigroup’s settlement was one of a string of fines on banking giants put together by the federal government in recent months over sketchy MBS bundling practices. [Reuters]
