Italian food company Parmalat is to sue Bank of America for $10bn, claiming that the bank helped facilitate a massive fraud allegedly carried out by some of the diary company's former managers. Bank of America has denied wrongdoing and has pointed out that it has had to write off $543m of its own funds due to its financial exposure to the company.
And talking of Parmalat, Citigroup has filed suit against the company, claiming that it (Citigroup) has been treated unfairly by the company's bankruptcy administrator. Citigroup says that 'the rights of creditors have been trampled upon repeatedly'. Citigroup has lodged $667.5m in credit claims against the company, but the Italian government-appointed adminstrator is said to have recognised just $2.5m of these. To add insult to injury, the administrator has also filed his own $10bn lawsuit against Citigroup, alleging that the world's largest financial services group helped Parmalat hide the true extent of its financial woes.
Deutsche Bank's first share certificate is to be auctioned off in London next month. It is thought likely to fetch around £20,000. The certificate is dated 1st September, 1871.
Billionaire financier George Soros is to take things a little easier. The 74 year-old investor is now said to be handing over some of the reins of his empire to his two sons. According to Forbes magazine, Soros is the 24th richest American, with a net worth of $7.2bn.
And finally, UBS Securities Canada has been fined US$1.6m by Canadian regulatory authorities for 'failing to develop and implement trading supervision policies and for failing to provide proper order and trade records'. A spokesman for the bank said that the firm 'acknowledges that its behaviour in this instance failed to meet regulatory requirements' and that UBS remains commited 'to the highest standards of supervision and compliance'.