Citi Would Have Faced $3 Bln Fine Under New Bill

Citigroup Inc. would have faced up to $3 billion in fines to resolve regulators’ claims that the New York-based bank misled investors – rather than the $285 million that the U.S. Securities and Exchange Commission is seeking – under a bill two senators introduced this week. The bill by Sens. Chuck Grassley, an Iowa Republican, and Jack Reed, a Rhode Island Democrat, would allow the SEC to impose fines in securities fraud cases that are triple the amount of loss to victims, or triple the amount of pecuniary gain to the company because of those losses.

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