SEC Investigates Citigroup Buyout
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Citigroup Inc., the biggest bank in America, said the Securities and Exchange Commission is probing its treatment of tax issues related to the $26.7 billion acquisition of Associates First Capital Corp. in 2000.
The investigation focuses the treatment of certain “tax reserves and releases” from 2000 to 2004, the New York-based company said today in its annual financial filing.
The SEC has subpoenaed witness testimony and certain accounting and internal controls-related information for the years 1997 to 2004, Citigroup said. The company said it is cooperating with the investigation and can’t predict the outcome.
Citigroup spokeswoman Shannon Bell declined to comment.
The bank completed its takeover of Associates First, the biggest American consumer finance company at the time, in November 2000.
