Citigroup forced to pay client $10.8m for RBS investment losses

Hundred Dollar Bills

RBS becomes a headache for Citi.

Bloomberg News reports that Citigroup was ordered to pay $10.8 million to a customer over his losses on investments in Royal Bank of Scotland.

A Financial Industry Regulatory Authority arbitration panel found Citigroup liable, and also ordered Edward Mulcahy, a former employee, to pay $250,000 to the investor, John Leopoldo Fiorilla, according to a July 30 ruling.

Shares of RBS plummeted during 2008’s credit crisis as the firm took $69 billion from taxpayers in the largest bank bailout in history.

'We are disappointed with the award, which was not supported by the facts,' Danielle Romero-Apsilos, a spokeswoman for Citigroup, said in an e-mail. Jeffrey L. Friedman, an attorney who represented Mulcahy and the bank, referred to the company’s statement when asked to comment.

Fiorilla had initially sought $19.5 million, according to the ruling.

To access the full Bloomberg article hit the link below.

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