Citigroup is big trustee to Lehman debt

[tpsbmam]

Source: The Economic Times

Citigroup and Bank of New York Mellon are trustees to $138 billion of Lehman Brothers' bonds, the biggest on the list of unsecured creditors, according to a petition filed in a New York bankruptcy court Monday.

Banks are now trying to calm employees and clients in the wake of Lehman's bankruptcy filing Monday, Forbes magazine reported on its website.

Citi, which is also reeling from exposure to mortgage securities and rising loan losses, said in a memorandum Monday by chief executive officer Vikram Pandit that the firm had strong liquidity and capital positions.

Read more: http://economictimes.indiatimes.com/News/International_Business/Citigroup_is_big_trustee_to_Lehman_debt/articleshow/3490388.cms

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Share down again.

http://www.hindu.com/thehindu/holnus/000200809162029.htm

Citigroup shares plunged to as low as 14.10 dollars in early morning trade today at NYSE, marking a fall of 7.5 per cent from its previous close of 15.24 dollars. The stock had plummeted 15.14 per cent yesterday.

[no_hypocrisy]

1. Ironic. Another investment bank, Smith Barney, was purchased by Citigroup.

The founders of these institutions must be spinning in their graves.

[alcibiades_mystery]

2. Many years ago, that

[BrklynLiberal]

8. The parent company of Smith Barney, purchased Shearson...and as a result,

Shearson, Lehman Bros split into two companies. This was all done under Sandy Weill. Now Shearson and Lehman Bros will both be under the same thumb. Soon every brokerage house, bank and insurance company in this country, if not the world, will be owned by one big conglomerate.

[dkf]

3. I'm beginning to see how this domino thing works.

This is bad.

[aquart]

7. Pity they applied it to nation states instead of interlocking financial institutions.

Doesn't work at all for nation states.

[Jack Rabbit]

4. Isn't that like making Dutch Schultz the parole officer for Bugsy Moran?

[JuniperLea]

5. Isn't Citigroup largely owned by the Saudis? eom

[thereismore]

6. Citi is 49% Saudi capital, I think. Just sayin. nt