Enron Sues Banks - Wants Its Dosh Back

Dow Jones Newswires reports that Enron is off to court again. The failed energy giant is suing Citigroup and JP Morgan for the return of the $32m it claims it paid over to the two banks in fees as advisers for the last-ditch merger attempt it made with rival Dynegy, just before Enron's collapse in 2001.

Enron has filed a motion in the US Bankruptcy Court in Manhattan and seeks the return of $18.8m from Citigroup and $13.6m from JP Morgan, claiming that it received no real value for the fees it paid over. The two banks have declined to comment on the matter. A pretrial conference has been scheduled for 5th February.

In a related story, Bloomberg reports that a regulatory official has confirmed that Nikko Citigroup is being inspected by Japanese financial regulators. It remains unclear at this stage exactly what the regulators are examining, but Nikko Citigroup has confirmed that it is co-operating fully.

Only last March the firm was banned from trading for 20 days following breaches in local trading regulations.

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