U.S. SEC fines Citibank more than $38 million for mishandling ADRS

Business

Commuters walk past a Citibank branch in the Manhattan borough of New York, U.S., March 18, 2017. REUTERS/Ashlee Espinal

WASHINGTON (Reuters) – Citibank (C.N) will pay more than $38 million to the U.S. Securities and Exchange Commission (SEC) for abuse in handling American Depositary Receipts (ADRS), the regulator said in a statement on Wednesday.

The SEC found that Citibank falsely provided U.S. securities that represent foreign shares, or ADRs, to brokers in thousands of premature transactions. Those brokers and customers did not have the actual number of foreign shares to support those ADRs, the SEC statement said.

The bank did not admit or deny the SEC’s findings on its practices, but agreed to pay the fine and additional fees related to the abuses.

Reporting by Katanga Johnson; Editing by Chizu Nomiyama

Products You May Like

Articles You May Like

Democrats urge acting attorney general to step aside from Russia probe
U.S. movie theater chains fear Justice Department review may hit profits
Premier Foods moves to Brexit-proof supplies of Oxo cubes, Mr Kipling cakes
China cracks down on celebrity hype and fake click-through rates
Melbourne knife attacker inspired by Islamic State, police say

Leave a Reply

Your email address will not be published.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