SEC investigates Citi’s subprime business

* SEC probes Citi over subprime mortgage business

* Probe includes “ongoing inquiry” into Citi’s CDOs

NEW YORK Feb 25 (Reuters) – U.S. regulators are investigating Citigroup Inc’s (C.N) subprime mortgage bond business, the bank said in a regulatory filing.

The U.S. Securities and Exchange Commission and other regulators are “investigating Citigroup’s subprime and other mortgage-related conduct and business activities, as well as other business activities affected by the credit crisis,” according to the bank’s annual report filed late on Friday afternoon.

The SEC’s probe extends to “other business activities affected by the credit crisis, including an ongoing inquiry into Citigroup’s structuring and sale of (collateralized debt obligations),” the bank said.

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