Citigroup Subpoenaed in Mortgage Securities Probe
Citigroup (NYSE:C) said on Friday it received a subpoena from federal and state regulators seeking information about the bank's "issuing, sponsoring, or underwriting" of mortgage-backed securities.
The inquiries included a subpoena from the civil division of the U.S. Department of Justice, which Citigroup received on Jan. 27, it said in its annual report.
That same day Attorney General Eric Holder said the department had issued civil subpoenas to 11 financial institutions as part of a new effort to investigate misconduct in the packaging and sale of home loans to investors.
Citigroup is among the first institution to disclose it received one of the subpoenas. Bank of America (NYSE:BAC), for example, said in its annual filing released on Thursday it "received a number of subpoenas" from regulators and other authorities about the bank's underwriting and issuance of mortgage-backed securities, but did not specifically disclose any subpoena from the DOJ.
Citigroup said the requests for information came from state and federal regulators, including the Securities and Exchange Commission.