Citigroup to cough up USD 2 billion in Enron Case
Citigroup Inc has confirmed that they have decided to give away USD 2 billion dollars to the shareholders of the Enron Corporation who have accused the financial group in helping the Enron people to cause one of the biggest accounting fraud ever in the energy sector. This move would clear one of the biggest legal hassles for the company though it is coming at a huge cost.
This settlement is the largest until now in the Enron case and also one of the largest in the corporate history of United States. However, it is still no match for the $2.58-billion worth settlement Citigroup had with the WorldCom Inc investors in 2004.
Market analysts predict that this decision from the Citigroup should result in more parties involved to come up with their offers to settle. Tim Ghriskey, chief investment officer at Solaris Asset Management in New York said in a statement: â€œI think this will force the hand of other big banks like JP Morgan Chase. Usually once one settles, the others follow.â€
There are a whole range of banking and financial services involved with some prominent names being Barclays plc, Credit Suisse First Boston, Merrill Lynch, Canadian Imperial Bank of Commerce, Toronto Dominion Bank, Royal Bank of Canada, Deutsche Bank AG and the Royal Bank of Scotland.