Citigroup sues Barclays for $141mn over forex services

Subscribe to GoodReturns

Citigroup Inc has sued Barclays Plc to recover more than USD 141 million for providing foreign exchange services to a unit of Lehman Brothers Holdings Inc soon after Lehman's bankruptcy.

Citigroup said it sought to stop settling trades for Lehman's brokerage unit on Sept. 17, 2008, two days after Lehman went bankrupt, because it was incurring large losses.

But Barclays was then in the process of buying Lehman's U.S. broker-dealer business, and, according to the complaint, urged Citigroup to keep providing the services. It also agreed to indemnify it for losses between Sept. 17-19, 2008.

Citigroup said it incurred USD 580 million in losses over that period, but has reduced the amount to USD 90.8 million. The USD 141 million it seeks includes this sum plus interest and legal fees, which Citigroup said are covered by the indemnity.

Read more about: citigroup, lehmann
Story first published: Wednesday, May 8, 2013, 9:30 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?