The backlash from institutional investors over auction-rate securities ARS) is causing a world of problems for financial giant Citigroup. Braintree Laboratories, a large Pharmaceutical manufacturer is suing the bank for selling more than $33 million worth of auction-rate securities. Braintree is disputing the sale, which occurred in 2008, and alleging that is was orchestrated at […]
Citigroup Inc.’s Spanish unit improperly sold investment products for Lehman Brothers Holdings Inc., according to lawyers who say they filed a lawsuit on behalf of as many as 122 clients. Citigroup used aggressive marketing campaigns to sell the products, failed to diversify client investments and didn’t advise customers of what was happening at Lehman, said […]
Citigroup Inc.’s Spanish unit improperly sold investment products for Lehman Brothers Holdings Inc., according to lawyers who say they filed a lawsuit on behalf of as many as 122 clients. Citigroup used aggressive marketing campaigns to sell the products, failed to diversify client investments and didn’t advise customers of what was happening at Lehman, said […]
Vikram Pandit, CEO for Citigroup, dismissed record low stock performances of just above $1 in a memo to employees, telling them that the bank’s earning power would ultimately prevail. Pandit’s memo was reproduced in on March 9, 2009 in a Wall Street Journal article.. In the letter, Pandit acknowledged his disappointment with Citigroup’s stock price […]
Mega bank Citigroup Global Markets is still facing tough times as the company was hit with a lawsuit from major drug company, KV Pharmaceutical. The complaint alleges that the bank misrepresented the risks associated with auction-rate securities (ARS). As a result, KV is now holding $72 million worth of illiquid auction-rate securities and has been […]