Citigroup offers $250m to Falcon Strategies investors

May 22nd, 2008
| More
Investors in Citigroup's Falcon Strategies hedge fund are being offered a $250 million compensation package in return for dropping legal claims against the company. The Falcon Strategies hedge fund traded mortgage bonds, government debt, and credit derivatives, and realized huge losses in the credit crunch. Investors include large banks such as Wachovia as well as Citigroup clients advised to invest in the fund by brokers from its Smith Barney wealth management division. Citigroup is facing a class action suit from private clients claiming that the fund was misrepresented to them. Both the lawsuit and the compensation package could be troublesome for Citigroup and its competitors, who may face similar problems in the future.

More Recent Headlines

Riley Sends Letter to Zilog

Diamond Lake launch put on hold

Lehman Annouces Restructuring and Finance Group

Icahn vs. Yahoo Proxy Battle

Paulson Joins Icahn’s Team in Support of Yahoo/Microsoft Merger

CSX donates to congress before hearings

Pirate Capital Stops Investor Withdrawals

Deutsche Banks sells portions of Alliance Boot's loans

Icahn buys up Yahoo shares

Amaranth's Maounis to start hedge fund Veriton