said Monday that they hope to soon reach an agreement with the
Securities and Exchange Commission
over the bank's role in the collapse of
Citigroup Chief Financial Officer Todd Thomson said the nation's biggest financial-services firm wants to move quickly in putting the controversy over the bank's role in the Enron affair behind it.
But Thomson would not say when a settlement with the SEC might be reached. Nor would he say how much Citi might be willing to pay in fines and restitution as part of any agreement.
In its annual report, filed a few weeks ago, Citi said it has had "substantive discussions" with the SEC over Enron.
Meanwhile, last month
agreed to pay $80 million in fines and restitution to the SEC over its role in providing financing for some of Enron's shady off balance sheet deals.
Thomson said he did not anticipate Citi taking any additional charges against earnings to cover an agreement with the SEC. He said $1.3 billion set aside last year as an all-purpose litigation reserve should be more than enough to cover any resolution with the SEC.
As part of its ongoing Enron inquiry, the SEC inquiry is believed to be examining a series of controversial prepaid oil and gas transactions that Citi and
J.P. Morgan Chase
arranged for Enron.
Last summer a congressional panel looking into those transactions characterized them as "sham transactions" that enabled Enron to inflate its earnings, while making its balance sheet look less laden with debt. Critics contend the transactions were nothing more than disguised loans from the banks to Enron and not actual contracts to sell oil and gas shipments.