Citibank (NYSE: C) announced on Thursday that it had come up with an agreement to pay $57.3 million (or 42.9 million euroes) in compensation to Spanish clients who lost money in investments made through Citibank in the failed investment group Lehman Brothers.
In a statement made by the company, Citigroup’s Spanish branch said that the company would by 55% of the nominal value of Lehamn Brothers financial products that it sold to 2,700 investors for a total of $104 million (or 78 millino euroes).The investors affected by the settlement that accept the offer will receive their compensation payments on may 7th, according to the bank.“The main objective of this offer is to protect our clients,” the president of the Spanish branch of Citibank, Joel Kornreich, said in the statement.
Adicae, one of the firms that brought suit against the company, said it backed the voluntary agreement, saying it was “certain that the vast majority of those affected will ratify it.”
Lehman Brothers collapsed in September of 2008 under a large amount of debt, shocking the financial world and marking the beginning of what we now remember as the financial crisis.
Many investors, both in Spain and elsewhere, were not direct Lehman clients but discovered they lost savings which their banks inveted in the gruop.
The law firms accused Citibank of “aggressive marketing” of the Lehman products to people with modest savings even though this was “clearly not in the interest of the clients.”
Πηγή: Ηλεκτρονική εφημερίδα: "American Banking News" Δημοσιεύθηκε στις 09/04/2010
url: http://www.americanbankingnews.com/2010/04/09/citibank-to-provide-57-3-million-to-spanish-lehman-brothers-victims-nyse-c/
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