Citigroup - Lawsuits And The Kid's Nursery

CBS MarketWatch reports that there are now as many as 62 class action suits pending against Citigroup unit Salomon Smith Barney and the firm's former star telecoms analyst, Jack Grubman.

The figures were detailed by Citigroup in a recent filing with the US Securities & Exchange Commission.

In the meantime, the spat over Grubman's emails and Citigroup boss Sandy Weill continues. It has now transpired that Weill helped secure places for Grubman's twin daughters in an exclusive Manhattan nursery school. Grubman allegedly e-mailed a friend earlier this year that Weill's help came after he began recommending that investors buy AT&T stock. Citigroup also pledged $1m to the organization that runs the nursery.

Weill has hit out over the contents of several of Grubman's e-mails, some of which he claims were made up. He is also thought to be concerned that other e-mails are being deliberately misconstrued by the press to make sensational headlines.

The Citigroup boss has said that it is nonsense to suggest that he had ulterior motives in trying to help Grubman. Some feel that his actions may have been reward for Grubman's uprating of AT&T stock at a time when Salomon was undertaking lucrative advisory and underwriting work on behalf of the company. Weill has said: 'I tried to help Mr Grubman because he was an important employee who had asked for my help. It is therefore deeply upsetting that my intentions were so grossly distorted in this e-mail'.

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts