Citigroup settled litigation filed by Enron creditors for $1.66 billion without admitting any wrong doing; it had already set aside reserves so it sounds like good news, removing at least one uncertainty from their ugly balance sheet. Now they just have to clean up their other shit. (P.S. Meredith Whitney sharpened her pencil this morning and cut her Citigroup estimates again)
Citigroup Inc., the biggest U.S. bank by assets, will pay $1.66 billion and give up an estimated $4.25 billion in claims to settle a lawsuit by Enron Corp. creditors over the former energy trader's bankruptcy case.
The creditors, represented by Houston-based Enron Creditors Recovery Corp., were seeking as much as $20 billion from New York-based Citigroup. The bank is the sole remaining defendant in the 2003 lawsuit seeking to hold lenders liable for the roles they allegedly played in the fraud that destroyed the company. Enron filed for bankruptcy in December 2001.
Citigroup, which didn't admit or deny wrongdoing, said funds for the settlement have already been set aside. As part of the accord, Enron agreed not to challenge $2.4 billion in claims by holders of credit-linked notes tied to Citigroup.
Citigroup Settles Enron Megaclaims for $1.66 Billion - Bloomberg
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