Citi Concealed $65B In Losses During Housing Collapse: Suit

Law360, New York (December 12, 2012, 9:01 PM EST) -- Two European fund managers on Wednesday accused Citigroup Inc. of being slow to report $65 billion in toxic collateralized debt obligations and other losses as the U.S. housing market fell apart, allegedly costing Citi investors millions.

Switzerland-based Swisscanto Asset Management AG and its Luxembourg affiliate Swisscanto Asset Management International SA are demanding unspecified compensatory and rescissory damages for substantial losses they say they incurred on seven different types of Citi securities they purchased between August 2006 and January 2009.

“Despite [a] steady trickle of bad news,...
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