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

Toshiba to cut headcount, liquidate UK nuclear unit
Vietnam wants 50 percent of social media users on domestic platforms by 2020
North Korea postponed U.S. talks because ‘they weren’t ready’: Haley
Trump signs immigration order on asylum
Box Office: ‘Grinch’ sees green with $66 million, ‘Overlord’ beats ‘Spider’s Web’

Leave a Reply

Your email address will not be published.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