Citigroup settles over excessive charges for $1.2M
WASHINGTON (AP) - March 19, 2012 (WPVI) -- Citigroup is paying $1.25 million to settle with industry regulators over allegations that it charged customers too much on corporate bond transactions.
The Financial Industry Regulatory Authority, the securities industry's self-policing regulator, say it has fined a Citigroup subsidiary $600,000 and ordered it to repay $648,000 to customers for excessive charges.
FINRA says Citi International Financial Services charged as much as 10 percent on corporate bond trades from July 2007 through September 2010, while marking down the price for bonds it bought by as much.
FINRA says a more reasonable charge is between 1 percent and 5 percent.
The company neither admitted nor denied the allegations.
citigroup, economy, business/finance
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