'Citibank to repay 'duped' savers' ?

Discussion in 'Wall St. News' started by Wallace, Oct 25, 2009.

  1. 'Belgian prosecutor wants Citibank to repay 'duped' savers' '
    "BRUSSELS (AFP) - Prosecutors in Belgium want US lender Citibank to pay back 128M
    euros to Belgian customers who claim they were duped into buying high-risk financial
    products from failed investment bank Lehman Brothers (NYSE: LEH - news) , media
    reports said Saturday.
    Two leading business newspapers, L'Echo and De Tijd, reported the public prosecutor will
    argue Citibank's Belgian operations enticed clients with "false advertising" and "tricks" to
    convince them to swap their savings for high-risk products from the fallen Wall Street Bank.
    The reports said the case will open on December 1 where prosecution will call on Citibank
    to reimburse the 4,000 clients affected with a total of 128M euros ($192M) plus interest.
    Calls to the public prosecutor's office seeking comment were not immediately returned.
    Lehman Brothers collapsed on September 15, 2008, sending a jolt through financial markets
    and triggering instability in other banks worldwide.
    The case in Brussels' civil tribunal was brought following by a complaint from an investors
    rights association, Deminor. The aggrieved customers argue they received false or inaccurate
    information about the financial products they were sold.
    Some 18,000 Belgian savers were hit by Lehman Brothers's collapse, losing close to 325M
    euros ($488M)." end

    first report i've seen of individuals getting hit, and suing
    and why Belgians in particular, surely they weren't the only ones sold to ?
  2. It was capital guaranteed.... By Lehman Brothers.

    But only in the small print.

    Otherwise it was guaranteed by C, biggest and safest bank in the world.

    Your money is safe here.

    They kept selling it days before Lehman collapsed to grandpa and grandma who trusted their bank foolishly.

    The old do your own homework VS all bankers are criminals debate.
  3. Mvic


    This was a fraud that Citibank perpetrated across Europe in size at the urging of their New York bosses, they were making big commissions off the sales and never mentioned that the money was not guaranteed by Citi but was instead a Lehman's note. Where are the criminal charges? I understand that here in the US the banks own the law but US banks owning the law in Europe too?