We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Citigroup to Settle 10-Year Old Dispute With Lehman Brothers
Read MoreHide Full Article
Citigroup Inc. (C - Free Report) has agreed to pay $1.74 billion to the estate of Lehman Brothers Holdings Inc. for a case that was filed during 2008 financial crisis. The settlement comes as a tailwind for Lehman’s unsecured creditors in the 10-year old bankruptcy case.
Citigroup had claimed that Lehman owed it $2 billion as a result of bankruptcy. However, Lehman accused Citigroup of making a false claim, as at that time it had access to $2.1 billion it had on deposit for trades with the bank. Lehman also charged the company of making up extra costs and using unfair methods in order to justify its claim.
Further, Lehman claimed that even after bankruptcy, Citigroup had charged it with costs for replacing trades even though it had hedged its risk and not replaced individual trades.
During a trial held in New York, Lehman brought forward phone recordings and messages from Citigroup traders, which showed how they tried to take advantage of the situation.
However, Citigroup said that it followed accepted standards for closing trades and used best professional judgment to determine close-out amounts on the trades. The contracts were governed by International Swaps & Derivatives Association master agreements, which gave Citigroup the right to assess the close-out costs as long as it used commercially reasonable procedures.
Nevertheless, Citigroup is pleased to have settled the case with Lehman, per a bank spokesperson.
Citigroup remains on track to settle all the pending legal matters since the financial crisis. Though this goal is likely to keep expenses elevated in the near term, it would enable Citigroup to focus on developing its business strategically.
Shares of Citigroup have gained 22.4% year to date, outperforming the industry’s rally of 9.9%.
Currently, the stock carries a Zacks Rank #3 (Hold).
M&T Bank’s current-year earnings estimates have been revised slightly upward over the past 60 days.
Federated's Zacks Consensus Estimate for current-year earnings moved about 1% upward over the past 60 days.
PNC Financial’s current-year earnings estimates have been revised nearly 1% upward, over the past 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Citigroup to Settle 10-Year Old Dispute With Lehman Brothers
Citigroup Inc. (C - Free Report) has agreed to pay $1.74 billion to the estate of Lehman Brothers Holdings Inc. for a case that was filed during 2008 financial crisis. The settlement comes as a tailwind for Lehman’s unsecured creditors in the 10-year old bankruptcy case.
Citigroup had claimed that Lehman owed it $2 billion as a result of bankruptcy. However, Lehman accused Citigroup of making a false claim, as at that time it had access to $2.1 billion it had on deposit for trades with the bank. Lehman also charged the company of making up extra costs and using unfair methods in order to justify its claim.
Further, Lehman claimed that even after bankruptcy, Citigroup had charged it with costs for replacing trades even though it had hedged its risk and not replaced individual trades.
During a trial held in New York, Lehman brought forward phone recordings and messages from Citigroup traders, which showed how they tried to take advantage of the situation.
However, Citigroup said that it followed accepted standards for closing trades and used best professional judgment to determine close-out amounts on the trades. The contracts were governed by International Swaps & Derivatives Association master agreements, which gave Citigroup the right to assess the close-out costs as long as it used commercially reasonable procedures.
Nevertheless, Citigroup is pleased to have settled the case with Lehman, per a bank spokesperson.
Citigroup remains on track to settle all the pending legal matters since the financial crisis. Though this goal is likely to keep expenses elevated in the near term, it would enable Citigroup to focus on developing its business strategically.
Shares of Citigroup have gained 22.4% year to date, outperforming the industry’s rally of 9.9%.
Currently, the stock carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the financial space are M&T Bank Corporation (MTB - Free Report) , Federated Investors, Inc. and PNC Financial Services Group, Inc. (PNC - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
M&T Bank’s current-year earnings estimates have been revised slightly upward over the past 60 days.
Federated's Zacks Consensus Estimate for current-year earnings moved about 1% upward over the past 60 days.
PNC Financial’s current-year earnings estimates have been revised nearly 1% upward, over the past 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>