atans1

Ghosts haunting Citigroup this Christmas

In Banks, Financial competency on 27/12/2011 at 6:01 am

(Another piece in an occasional series wondering why anyone would want to be a Citi customer. No, never had any account with Citi, nor ever sought one.)

1. Another soured deal that it did with a wealthy client

Saudi businessman Ghazi Abbar, who claims in an affidavit he lost $383 million of his family’s fortune on investments with Citigroup Inc., was sold one of the transactions even though the bank questioned his ability to properly manage them, according to an internal memo.

http://www.bloomberg.com/news/2011-11-30/citigroup-saudi-deal-haunts-pandit-as-family-claims-383-million-wipeout.html

2. Bloomberg reports, Part of the New York-based bank’s retail business will be suspended for 30 days by the Japanese Financial Services Agency, said one of the people, who asked not to be named because the matter isn’t yet public. Citigroup’s trading unit will be suspended from selling products tied to interest rates for 10 days and its head, Brian McCappin, may resign, the person said.

Citigroup Chief Executive Officer Vikram Pandit is trying to restore the bank’s reputation in Japan. Regulators punished the company twice in seven years after finding fault with its private-banking operation and a lack of internal controls.

The trading unit will be banned from selling certain products in Japan tied to the London and Tokyo interbank offered rates, or Libor and Tibor, the person said. These are rates at which banks are willing to lend money to each other. Citigroup employees tried to improperly influence Tibor to the firm’s advantage, two people familiar with the matter said earlier this month.

Related posts

http://atans1.wordpress.com/2011/07/01/behind-yr-payments-to-citi/

http://atans1.wordpress.com/2011/04/09/citi-owe-it-money/

http://atans1.wordpress.com/2010/11/06/citigroup-wins-life-or-death-fraud-case/

http://atans1.wordpress.com/2011/08/06/why-do-people-like-being-citi-clients/

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  1. But GIC loves Citi leh. PAP dumped a few billion CPF money into Citi. No wonder need to jack up Minimum Sum and increase Withdrawal Age to 65 or izit 67? And come out with CPFLife so can repay your CPF in small quantities in diminished inflation-ravaged dollars over 40 years. LKY was also a proud member of Citi Board of Directors leh. Wonder how much of Sinkies CPF money he enjoyed when Citi used the money for cocktails, luncheons, and dinners and dance in 5-star hotels?? If I were LKY, I will not call Sinkies daft; I would call them retarded. hahaha…

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