Citigroup Fined $525,000 Over Commodities Claims

Citigroup (NYSE: C  ) has agreed to pay $525,000 in fines over accusations that the firm exceeded speculative position limits in wheat futures contracts in trading on the Chicago Board of Trade.

The Commodity Futures Trading Commission says Citigroup violated trading limits on multiple occasions in December 20009. Citigroup neither admits nor denies the commission's findings and conclusions. According to the Commission, Citigroup traders' bullish positions on the Chicago Board of Trade were used to hedge customer transactions over the wheat trading limit of 6,500 contracts for all combined contract months. The penalty is a small one for Citigroup, which had operating cash flow of more than $41 billion in 2011.

Fool contributor Dan Carroll holds no positions in the stocks mentioned in this article. The Motley Fool owns shares of Citigroup. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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