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DrDebug Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-01-06 02:32 AM
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5. Citigroup
Citigroup Inc. is a major American financial services company based in New York City. According to Forbes Global 2000, it is the world's biggest company and the most profitable financial services firm. Its formation was announced on April 7, 1998 through a merger of Citicorp and Travelers Group. It was the first US company to combine banking with insurance underwriting since the Great Depression. The company has 300,000 employees and over 200 million customer accounts in more than 100 countries, with total assets of nearly 1.6 trillion USD. It is a primary dealer in U.S. Treasury securities and its stock is a component of the Dow Jones Industrial Average. (1)

One of the ancestor companies is Kuhn, Loeb & Co. (2) They were named one of the inside traders of 9/11 and their stock were traded at 45x the usual amount. (3)

Enron & WorldCom
Citigroup was also accused of helping Enron and other companies hide their losses by loaning money to those companies in a special way that would reduce liabilities visible on the balance sheet. In May 2004 the company agreed to pay $2.65 billion, or $1.64 billion after tax, to settle a class action lawsuit brought on behalf of purchasers of WorldCom securities. (4)

The investigation into WorldCom was disrupted because much of the evidence was in WTC7 which got pulled by Larry Silverstein. Salomon Smith Barney says that back-up tapes of corporate emails from September 1998 through December 2000 were stored at the building and destroyed in the attack. (5)

August 26, 2004
Citigroup Sued Over Enron Scandal

NEW YORK (Reuters) - Citigroup Inc. faces a lawsuit from angry investors who allege they were defrauded in a massive scheme of deception when they bought securities tied to the credit-worthiness of bankrupt energy trader Enron Corp.


Terror Inc.

October 18, 2004

A tale of suicide bombers, Saudi princes, cash payments to terrorist groups and how Citigroup got caught up in all of it.

By Robert Lenzner and Nathan Vardi, Forbes

IN AMERICAS WAR ON TERROR, cutting of the financial flow to the bad guys is a key goal. But it is a particularly elusive one. Even when a patriotic U.S. bank spots something suspicious, it may be hard-pressed to do much about it.

And so it is that Citigroup, the worlds largest financial institution, finds itself confronting the fact that a bank it partly owned and managed in Saudi Arabia may have funneled thousands of dollars to terror groups and to the families of Palestinian suicide bombers at the behest of the Saudi royal family.

The allegations involve Saudi American Bank, also know as Samba, the Riyadh-based affiliate in which Citi had a 20% stake. In late 2002 Samba was added as a defendant in a federal lawsuit filed by relatives of September 11 victims against prominent Saudis and charities to which they appeared to be connected.


Samba, the second-largest bank in Saudi Arabia, with a 12% share of bank profits in the kingdom, earned $383 million in 2003. It was the linchpin of Citis close ties to the Saudi elite. The royal familys Prince Alwaleed Bin Talal al-Saud, the worlds fourth-richest man, owns $9.4 billion in Citigroup stock and a 7%-plus stake in Samba. Sambas chairman was billionaire Abdulaziz Bin Hamad Algosaibi, who died last year; his family, too, owns 7% or more of Samba.

(...) In still another lawsuit a, the Saudi committee is alleged to have funded through Arab Bank suicide bombers and Hamas, the Palestinian group that has claimed responsibility for dozens of suicide bombings in Israel in recent years. That suit, filed in July in U.S. district court in Brooklyn on behalf of eight families of terror victims, alleges that $42 million was distributed to terrorists and/or their beneficiaries. ... Arab Bank, publicly traded on the Amman Stock Exchange, denies it.


See also:
Remember Brazil's largest corporate scam. Citigroup was the partner in crime with Kroll.


The Citygroup watch

2. See Lehman Brothers
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