Citigroup Inc.’s said Monday that its Citibank N.A. unit is currently being investigated regarding certain student loan servicing practices. Since similar loan servicing practices led to enforcement actions against at least one other financial institution, Citigroup said regulators may impose penalties on Citibank, or order the bank to remediate customers. Citigroup said it was cooperating with the investigation. The stock, which was still inactive in premarket trade, has gained 8.7% over the past three months, while the S&P 500 has slipped 0.2%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News