Citigroup Targeted Over $1B In Subprime CDOs

Law360, New York (January 24, 2012, 6:35 PM EST) -- Loreley Financing Ltd. launched yet another suit against issuers of collateralized debt obligations Tuesday, this time suing Citigroup Global Markets Inc. over nearly $1 billion in CDO investments backed by subprime mortgages at the end of the housing bubble.

In a complaint filed in New York Supreme Court in New York County, Loreley — a group of nine investment companies specializing in CDO investments, headquartered on the island of Jersey — said that the Citigroup Inc. unit knowingly packaged subprime mortgages into CDOs while at the...
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