The SEC is in advanced talks with Citigroup (C) to settle allegations (read: $200M fine) that...

|About: Citigroup Inc. (C)|By:, SA News Editor

The SEC is in advanced talks with Citigroup (C) to settle allegations (read: $200M fine) that the bank held short positions against a $1B mortgage-bond CDO it sold in 2007, and is negotiating a much smaller fine ($5M) with Credit Suisse (CS), the CDO's collateral manager. Another probe is examining whether Mizuho (MFG) misled investors in mortage-bond deals.