In its most recent securities filing, Citigroup Inc. disclosed that the U.S. Attorney’s Office for the Southern District of New York is investigating some of Citi’s affiliates in connection with an investigation of mortgage-origination and mortgage-servicing companies.

In May, the U.S. Attorney’s Office filed a civil suit against Deutsche Bank AG alleging, among other things, reckless lending practices and violations of the False Claims Act for false statements made in order to participate in a federal program that backed mortgages.  U.S. Attorney Preet Bhahara indicated at the time that other banks might be in the targets of similar lawsuits.

Investigations of events leading to the mortgage crisis are proceeding elsewhere.  In June, the SEC and the Department of Justice subpoenaed Ally Financial Inc. and GMAC Mortgage LLC in connection with investigations of bulk settlements of mortgage loans placed in securitization trusts.  Citigroup and several other mortgage servicers are “engaged in discussions” with the U.S. Department of Justice, certain federal agencies, and multiple state attorneys general regarding a potential resolution of claims related to mortgage-servicing and mortgage-related issues.  Just last week Kamala Harris, the Attorney General of California, was reported to have subpoenaed Citigroup and its subsidiary with respect to their selling and marketing of mortgage backed securities in California.

Read the entire article, Citi Discloses Mortgage Probe by U.S. Attorney in Manhattan