Made misleading disclosures to investors
about mortgage-related risks and exposure
Citigroup - SEC charged Citigroup's principal U.S. broker-dealer subsidiary with misleading investors about a $1 billion CDO tied to the housing market in which Citigroup bet against investors as the housing market showed signs of distress. The proposed settlement would require a payment of $285 million by Citigroup that would be returned to harmed investors.
Goldman Sachs - SEC charged the firm with defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter
J.P. Morgan Securities - SEC charged the firm with misleading investors in a complex mortgage securities transaction just as the housing market was starting to plummet. J.P. Morgan agreed to pay $153.6 million in a settlement that enables harmed investors to receive all of their money back.
Wells Fargo - SEC charged Wells Fargo's brokerage firm and a former vice
president for selling investments tied to mortgage-backed securities without
fully understanding their complexity or disclosing the risks to investors.
Wells Fargo agreed to pay more than $6.5 million to settle the charges.
American Home Mortgage - SEC charged executives with accounting fraud and misleading investors about the company's deteriorating financial condition as the subprime crisis emerged. Former CEO settled charges by paying $2.45 million and agreeing to five-year officer and director bar.
Bank of America - SEC charged the company with misleading investors about billions of dollars in bonuses being paid to Merrill Lynch executives at the time of its acquisition of the firm, and failing to disclose extraordinary losses that Merrill sustained. Bank of America paid $150 million to settle charges
Number of Entities and
Individuals Charged
|
157
|
Number of CEOs, CFOs, and
Other Senior Corporate Officers Charged
|
66
|
Number of Individuals Who
Have Received Officer and Director Bars, Industry Bars, or Commission
Suspensions
|
36
|
Penalties Ordered or Agreed
To
|
> $1.53 billion
|
Disgorgement and Prejudgment
Interest Ordered or Agreed To
|
> $756 million
|
Additional Monetary Relief
Obtained for Harmed Investors
|
$400 million*
|
Total Penalties,
Disgorgement, and Other Monetary Relief
|
$2.68 billion
|
http://www.sec.gov/spotlight/enf-actions-fc.shtml
