This week's risk management news includes Citigroup’s $22b risk, CDIB’s continued suit against Morgan Stanley, and USB’s Madoff suit review.
July 20, 2011 | The Asian Banker Editor
Citigroup estimates it has $22b at risk in five European countries
Citigroup has estimated it has at least $22 billion in loans, trading assets and other “exposures” to Greece, Italy, Portugal, Spain and Ireland. The net figure includes $13 billion in so-called funded exposure as of June 30, mostly in the form of credit to financial institutions and companies.
Court keeps Chinese bank's fraud suit against Morgan Stanley alive
The appellate division of the supreme court of New York has refused to dismiss a fraud suit filed by China Development Industrial Bank against Morgan Stanley over the sale of collateral debt obligations backed by low-quality mortgages. The international bank accuses Morgan Stanley of concealing underlying risks associated with CDOs sold to the firm.
UBS to get review of Madoff trustee’s $2.6b suit
A U.S. district judge will be reviewing lawsuits against UBS by the liquidator of Bernard Madoff’s firm, at least the fourth time a bank in the Madoff case gained access to a higher court. Trustee Irving Picard sued UBS twice in bankruptcy court, demanding $2.6 billion and alleging the Zurich-based bank aided Madoff’s fraud by setting up so-called feeder funds and agreeing “to look the other way” at irregularities.
Re-disseminated by The Asian Banker
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Risk And Regulation Working GroupKeywords:USB, Morgan Stanley, Citigroup
