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Citibank will pay close to $ 40 million to settle civil charges, according to which the Securities and Exchange Commission announced Wednesday that US securities representing foreign equities in foreign companies were poorly managed.
The bank was accused of issuing US deposit certificates to brokers who did not own the foreign shares in the securities base. The alleged behavior would have occurred between August 2011 and November 2016, according to the SEC.
"Such practices have had the effect of inflating the total number of marketable securities of a foreign issuer, which has resulted in abusive practices such as inappropriate short selling and arbitrage of dividends that do not occur. should not have happened, "the commission said in a statement.
Sanjay Wadhwa, senior associate director of the SEC's New York office, said the charges were "the last of our ongoing investigation efforts to hold Wall Street institutions accountable for fraud." involving the whole sector ".
The settlement is the SEC's second ADR action and follows a $ 75 million fine imposed on Deutsche Bank for similar claims. Neither Citibank nor Deutsche Bank neither admitted nor denied the findings of the Commission.
Citibank will pay a total of $ 38.7 million in disgorging and penalties. She was credited for taking corrective measures and cooperated with the investigation.
"We are delighted that this case is resolved," said a spokesman for Citibank.
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