Citi Securities Unit Off To Good Start, But Firm Sued Over LIBOR (With BofA, JPMorgan, Others)


Citigroup CFO John Gerspach said the bank’s securities unit did well in January and that activity in trading and banking businesses looks similar to how last year began.

Bloomberg reports that Gerspach said this week at an investor conference in Miami hosted by Credit Suisse: 'January was a pretty good month and so the year got off to a pretty good start. I wouldn’t rate the year as 2009. January 2009 is still in the record books'.

In the meantime, Bloomberg reports that a Sheldon H. Solow-led New York realty company sued Citigroup, JPMorgan Chase, Bank of America and several other banks for allegedly conspiring to manipulate the U.S. dollar Libor rate.

In a complaint filed today in federal court in Manhattan, 7 West 57th Street Realty Co. accused the banks of falsely reporting to the British Bankers Association interest rates at which the lenders themselves were able to borrow money day to day, causing the BBA to set an 'artificial' London Interbank Offered Rate for trillions of dollars worth of transactions including bank loans and municipal bonds.

Also named as defendants in the lawsuit are Royal Bank of Scotland Group Plc, which this month agreed to pay $612m to U.S. and U.K. regulators to resolve Libor manipulation claims, Barclays Plc, the U.K.-based bank that in June agreed to pay $454m, and UBS AG, which in December was fined $1.5 bn by U.S., U.K. and Swiss regulators for its rate-rigging role.

Citigroup CFO Sees ‘Pretty Good Start’ to Year for Markets Unit

Solow Sues Citigroup, BofA Alleging Manipulation of Libor

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