J.P. Morgan, Citigroup Sued by BayernLB, Other Banks Over Enron

[54anickel]

http://quote.bloomberg.com/apps/news?pid=10000085&sid=aoec787DC4oM&refer=europe

March 22 (Bloomberg) -- Citigroup Inc. and J.P. Morgan Chase & Co., former lenders to Enron Corp., were sued by Bayerische Landesbank and other European and Middle Eastern banks that provided $201.9 million in credit facilities to the bankrupt energy company.

Bayerische Landesbank, Standard Chartered Bank, DZ Bank AG, Dresdner Bank AG, Arab Banking Corp. and WestLB AG filed the suit today in U.S. District Court in New York. J.P. Morgan last year accused WestLB in a lawsuit helping Enron hide debt.

The new lawsuit claims J.P. Morgan and Citigroup's Citibank and Salomon Smith Barney duped the banks into funding Enron and seeks $201 million in compensation for the loans as well as unspecified punitive damages. J.P. Morgan and Citigroup already face separate investor suits over the financial institutions' involvement with Enron.

J.P. Morgan and Citigroup concealed their knowledge of Enron's ``deteriorated true financial condition'' and ``fraudulently induced'' Bayerische Landesbank and other banks to provide financing, the lawsuit says.

more...

[Thucydides]

1. I think the world is pissed at the US, I believe that the Neocons are ....

are going to be brought down. Sure, King George may own the Diebold voting machines, but I think he is going to be brought down by the combined influence of the rest of the world. Some how, some way, the BFEE is going to be taken down. They are bad for business, there way to many people and countries that do not like the buffoons that are running things at the moment!

[ozymandius]

2. Stick it to them!

Make 'em hurt. I feel no compassion for these criminals.

It always amazes me how some Joe can hold up a liquor store and get 25 years to life. Yet a huge corporate robber baron can receive a "fine" for devastating the financial lives of, potentially, millions of investors by participating in a money laundering scheme.

[54anickel]

3. What worries me is -

1) All this consolidation of banks, how many major banks are we down to now with all these mergers?
2) The fact that they allowed the latest merger of Bank of America and FleetBoston despite all the investigations, proven wrong-doings and ties to Enron with BoA.

http://www.washingtonpost.com/wp-dyn/articles/A64913-2004Mar16.html