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Citigroup Sorry Angry Investors Who Lost Billions Feel That Way

And while the firm is not gonna admit it made any mistakes, it will offer said investors a hundred mill or so for their time.
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Citigroup’s settlement with the Securities and Exchange Commission, announced on Monday, comes more than seven years after the two hedge funds collapsed, saddling investors with billions of dollars in losses...In the fall of 2007, one of the hedge funds, called Falcon Strategies, sold as much as $110 million in additional shares in the funds to investors. Yet only a few months later, in January 2008, the liquidity problem had become so dire that the manager of the Falcon fund had drawn up “liquidation scenarios.” Even Citigroup, the parent, wouldn’t extend emergency liquidity to its own hedge funds...Citigroup agreed to pay the $180 million to harmed investors without admitting any wrongdoing. [Dealbook]

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