Citigroup Said to Get California Subpoena Over Mortgage Deals
Aug. 5 (Bloomberg) — Citigroup Inc., the third-biggest U.S. bank, was subpoenaed by the California Attorney General’s Office over mortgage securitization, a person familiar with the matter said.
Attorney General Kamala Harris, who is investigating mortgage fraud, is seeking information from the New York-based bank on its practices, said the person, who wasn’t authorized to speak publicly about the matter and didn’t want to be identified.
The subpoena comes after Harris’s May announcement that she had set up a mortgage-fraud task force to investigate “every step” of the mortgage process from lending to securitization.
Shum Preston, a spokesman for Harris, and Mark Costiglio, a Citigroup spokesman, declined to comment yesterday on the subpoena.