Dow Jones: “Citi is not involved in the matter the SEC announced on Friday,” Gerspach said during a conference call with reporters to discuss the New York bank’s first-quarter earnings (Citi posted a $4.43 billion Q1’10 profit, its best result in more than two years).
The SEC, which is now involved in one of the biggest securities enforcement cases against a major Wall Street bank in years, has accused Goldman Sachs of duping its clients who purchased some mortgage-related investments during the housing boom. The 141-year-old bank — expected to report its latest earnings on Tuesday — has said it’s innocent and will fight the lawsuit.
Gerspach also acknowledged the SEC has launched “industrywide” inquiries into similar transactions. He said Citi is “fully cooperating with these investigations.”