"Saudi businessman Ghazi Abbar, who claims in an affidavit he lost $383m of his family’s fortune on investments with Citigroup, was sold one of the transactions even though the bank questioned his ability to properly manage them, according to an internal memo.
Soured deals struck with wealthy clients are haunting Citigroup chief executive officer Vikram Pandit. Finra awarded $54m in April to customers of the New York-based bank’s municipal-bond hedge funds, and in February, Brazilian investor Bernardo Valentini sued the bank, claiming he lost more than $24m on derivatives Citigroup told him had “no risk of loss.”
“As each issue bubbles up, analysts or providers of capital to the firm have to say, ‘OK, what other tape bombs are lying in the dusty lines of Citi’s balance sheet?’”..............READ MORE
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