Citigroup Sued in New York by Norway's Central Bank for Stock, Bond Losses

[Lars77]

Source: Bloomberg

Norges Bank, Norway’s central bank, sued Citigroup Inc. along with Chief Executive Officer Vikram Pandit and Chairman Richard Parsons over $835 million in losses in Citigroup stock and bonds.

Citigroup misrepresented its financial condition and failed to disclose material information, leading the Norway bank to buy the New York-based bank’s stock and bonds at inflated prices during the period between January 2007 and January 2009, Norges Bank said in the Sept. 17 lawsuit filed in U.S. District Court in Manhattan.

“Citi’s near-demise had its genesis in the company’s increasing willingness to take on risk for the sake of profit, without regard for -- and without disclosing -- the magnitude of the downside exposure it faced if those risks materialized,” the bank said in the complaint.

Read more: http://www.bloomberg.com/news/2010-09-24/citigroup-sued-by-norway-s-central-bank-for-stock-bond-losses.html

[Roland99]

1. And who chaired Citigroup's Alternative Investment unit then? Obama's OMB pick: Jacob Lew

http://en.wikipedia.org/wiki/Jacob_Lew

[dixiegrrrrl]

2. good catch.

He is also on the Council of Foreign Relations, which has an impressive gathering of both
Neo-con and Dem. movers and shakers. Worth looking up its history for anyone who cares.