atans1

Citigroup wins life-or-death fraud case

In Banks on 06/11/2010 at 6:16 am

A working-class NY City jury took only four hours to throw out claims that Citigroup tricked a British financier over the purchase of EMI.

Investors pushed the price up 3% after the result was announced because the financier had claimed US$8 billion plus punitive damages.  If he had won, Citigroup would have been in serious trouble. The money was not “peanuts” and the loss of reputation was not minor. GIC (they still own a big swag of Citi) and other shareholders might have ended up with a worthless investment.

Hence the surprise that Citi was prepared to fight the case rather than settle.

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