Same Fund That Is Now Investing In Greek Bonds Sues Citi Over "Willful Financial Misstatements" Causing Fund To Buy Citi Shares
A hilarious little detour that will likely get no press attention and will be promptly covered up with another taxpayer sponsored settlement. Apparently the Norway Wealth Fund has decided to sue Citi "over alleged misstatements about the company's financial condition, which it claims caused it to buy Citi shares at inflated prices." The purchases resulted in over $835 million of losses in Citi stocks, bonds and preferred. And the cherry on top is that this is coming from the same fiduciarily irresponsible people who are now buying up Greek debt on the assumption that on a Yield to Infinity it is all "money good." Has the collective IQ of investors in the world over the past 30 years just correlated inversely with the amount of cheap (and now free) liquidity out there? Just how dumb do you have to be before you realize that everything is rigged?
From Dow Jones:
Norway's central bank has sued Citigroup Inc. over alleged misstatements about the company's financial condition, which it claims caused it to buy Citi shares at inflated prices.
Norges Bank claims that it lost more than $735 million on its investments in Citigroup common stock and more than $100 million on its investments in Citi bonds and preferred shares. The stocks and bonds were purchased between January 2007 and January 2009, according to the lawsuit.
The lawsuit, filed in Manhattan federal court Sept. 17, alleges that Citi made a series of misstatements about its financial health, particularly its exposure to subprime mortgages and other toxic assets.
Norges Bank, through its investment arm, manages about $443 billion in assets on behalf of Norway's finance ministry.
Last year, seven Norwegian municipalities and the bankruptcy estate of Terra Securities ASA sued Citigroup over the sale of more than $115 million in derivatives in 2007, claiming the notes were misrepresented as safe, conservative investments. That separate lawsuit is pending
h/t London Dude Trader