SEC Waives Citigroup Hedge Fund Restrictions: WSJ

Citigroup Inc. has had restrictions lifted by the Securities and Exchange Commission that will allow the bank to sell investments in hedge funds and private equity funds to its wealthy clients, among other activities. The waivers, granted on Friday, follows a $285 million settlement with the SEC in August over allegations the bank misled investors about mortgage bonds sold before the financial crisis. The SEC determined Citigroup was no longer a "bad actor" and would be allowed to circumvent certain situations, including quickly issuing stocks and bonds without an SEC review. Citigroup shares were down 0.6% in early trading.