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 […]
Double of what analysts had predicted, Citigroup posted a whopping $8.9 billion fourth-quarter loss. The New York-based bank has been forced to resort to the drastic measure of splitting into two separate entities: Citicorp and Citi Holdings, as a means to try and raise some capital. Citicorp will focus on traditional banking, with Citi Holdings […]
Still suffering in the aftermath of financial crisis, job lay-offs and a lack of investor confidence, mega bank Citigroup is reportedly gearing itself up to sell its Smith Barney brokerage unit to Morgan Stanley. According to reports in the Wall Street Journal and the New York Times, the deal would be structured as a joint […]
Bear Stearns, Fannie Mae and Freddie Mac, American Insurance Group and Lehman Brothers are all example of where the opposite proved to be true. Failing to live up to the “too big to fail” Wall Street theme, many of these companies were forced to resort to government rescues in the form of multibillion-dollar bailouts to […]
Two Louisiana pension funds filed lawsuitas against Citigroup and JPMorgan Chase in the wake of the subprime fallout and 2008 credit crunch. The Louisiana Sheriffs’ Pension and Relief Fund and the Louisiana Municipal Employees’ Retirement System allegesd that Citigroup and JPMorgan misled investors in more than $29 billion of Citigroup’s securities offerings dating back to […]