Categories AlphaGraphs, Finance, Markets

SEC fines Citibank for mishandling American Depository Shares

The US Securities and Exchange Commission (SEC) finally caught up with the Citibank (C) and fined them $38 million for misrepresenting American Depositary Receipts (ADRs) to brokers.

The financial giant provided US securities that represent foreign shares in numerous premature transactions, without the latter not knowing the actual number of foreign shares to support ADRs.

Citi neither denied nor admitted the SEC charges and have agreed to pay the fine.

 

Citigroup Q3 2018 earnings alphagraphic

Two months ago, Citigroup announced that it was merging two of its businesses — Investment bank and capital markets — in order to gain a competitive edge in advisory and capital market deals.

In October, the third largest US bank posted third-quarter earnings beating Wall Street estimates. The company reported earnings of $1.73 per share on a revenue of $18.4 billion. For the period, Citigroup reported in-line net interest margin of 22.7%, helped by a 7% decline in the effective tax rate.

Pelosi in the lead for Speaker job as tech, healthcare stocks jump on midterm results

The stock opened bullish today and hit a high of $67.97 in the first hour of trading, but quickly fell to $66.70 after reports of the fine broke — and effects of the mid-terms kept it at lower levels.

 

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top