Citigroup fulfills USA treasury

14.07.2014

The Attorney General of USA talked about the biggest fraud unveiled lately at the press conference in Washington.

Justice Department reached an agreement with Citigroup on the investigation started against the bank. As a result the banking group shall pay 7 billions USD, therefore admitting their guilt in participation of fraudulent securities which were secured with toxic loans. The penalty itself is 4 billions USA and is the biggest penalty of such kind in history. Additional 2,5 billions are levied on Citi as damages to natural and legal persons.

Attorney General of USA stated that the penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi. These measures taken by US Department of Justice are unlikely the last step in fight against fraud in the country’s territory. And Citigroup surely is not the first and foremost not the last financial institute, that paid for its fraudulent actions.

Source: http://www.justice.gov/iso/opa/ag/speeches/2014/ag-speech-140714.html

Expert’s opinion

Considering the penalty it is likely to be the biggest investigation lately. But this time in the hands of American authorities is national banking giant. Let me remind you, that not so long ago American treasury also was fulfilled by gigantic fines paid by BNP Paribas, and by other foreign banks as well. The end is not yet near.

Anna Shevchenko ( Lawyer, Honest&Bright)