Citigroup Financial Products Inc. provides loan, insurance, real estate, security broker/dealer, finance, and asset management services. It serves manufacturing, agriculture, and real estate industries. The company was formerly known as Salomon Brothers Holding Company Inc. The company was incorporated in 1984 and is based in New York, New York. Citigroup Financial Products Inc. operates as a subsidiary of Citigroup Global Markets Holdings Inc.
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Founded in 1984
FDIC Launches LIBOR Suit on Behalf of 38 Failed Banks
Mar 17 14
The FDIC filed a lawsuit against several of the banks and the British Banker's Association, accusing them of 'systematic' LIBOR manipulation and suppression. The agency seeks to recover the 'substantial losses' 38 failed banks sustained as a result of the defendants' alleged wrongful conduct. The list of plaintiffs in a March 14 complaint filed with the U.S. District Court for the Southern District of New York includes 38 failed banks. The FDIC as receiver for the closed banks seeks to recover the 'substantial losses' these institutions sustained as a result of the defendants' 'wrongful conduct.' The complaint states that the British Bankers' Association touted LIBOR as a simple, transparent benchmark calculated from competitive interest rates in the market for unsecured interbank loans. However, the FDIC alleges that during August 2007 to at least mid-2011, the bank defendants 'fraudulently and collusively suppressed USD LIBOR' to their own advantage. The FDIC claims that the BBA participated in the scheme to protect the revenue stream it generated from selling LIBOR licenses, and to appease the bank defendants who were on the LIBOR panel and were members of the BBA. Among the U.S.-based bank defendants named in the case is Bank of America Corp. and subsidiaries including Bank of America NA and Merrill Lynch & Co. Inc. The complaint also names Citigroup Inc. and subsidiaries Citibank NA and Citigroup Financial Products Inc., as well as JPMorgan Chase & Co. and several subsidiaries, including JPMorgan Chase Bank NA and Bear Stearns Capital Markets Inc. Europe-based defendants include Barclays Plc, Rabobank Nederland, Credit Suisse Group AG, Deutsche Bank AG, Portigon AG, WestLB AG, Royal Bank of Scotland Group Plc, Société Générale SA and UBS AG. HSBC Holdings Plc, U.S.-based unit HSBC Bank USA NA and Hong Kong-based subsidiary Hongkong & Shanghai Banking Corp. Ltd. are also on the list of defendants, as are Lloyds Banking Group Plc, Lloyds TSB Bank Plc and HBOS Plc. Canada's Royal Bank of Canada is named as a defendant. Defendants based in Asia include Norinchukin Bank and Bank of Tokyo-Mitsubishi UFJ Ltd. The FDIC is seeking full damages for all the economic, monetary, actual, consequential and compensatory damages that the closed banks suffered as a result of the defendants' wrongful conduct.