atans1

Can you trust Citi?

In Banks on 16/10/2010 at 5:25 am

Remember JR from Dallas?

He recently won US$11.1m++ from Citi. The arbitrator held that Citi’s broking arm had breached its fiduciary duty to him. This sum includes US$10m in puntitive damages.

And Terra Firma (a British private equity firm), is suing Citigroup over its disputed take- over of EMI for £4.2bn on the eve of the credit crunch. It is demanding compensation for EMI’s accumulated losses of £1.75bn and a punitive sum worth three times that figure, which would give TF £7bn.

The crux of Guy Hand’s case is that his private equity firm Terra Firma was allegedly tricked into buying EMI in 2007 by leading Citigroup financial adviser David Wormsley. Hands alleges that Wormsley tried to force up the price during the sale by telling him that another bidder … was still in the running. Guardian

And in 2008 in S’pore, Singapore Tycoon Oei Hong Leong, who was widely dubbed “The Man with the Midas Touch,” sued Citigroup for negligence and misrepresentation after he lost $1billion on foreign exchange and U.S. Treasury bond transactions last year.

The matter was settled out of court, in 2009.

Remember “The Citi never sleeps”?  Well so did the Eye of Sauron, the master of the orcs and other baddies  in Tolkien’s Lord of the Rings.

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