Citigroup Documents Show Broker Manipulation

January 16, 2012

The NY Times had a great article this weekend about how Citi sold its ASTA/MAT municipal arbitrage securities.  The article explained how risky these securities were, and how Citi hid that risk from investors.  Specifically, the article quoted a Citi broker that said:

I’m sure a great deal of time and energy went into the ASTA/MAT solution, one broker wrote. But my clients and I don’t see it as a solution. From our simplistic perspective, the product was defective, management inept, risk controls nonexistent and the effect was ruinous. If one drives their car into another, they are responsible; they have no option but to take responsibility for their actions.

These practices are all too common in the brokerage industry.  If you bought these or other securities where your broker did not disclose the riskiness of the product, call Jeffrey Salas at 312.803.4963 to discuss your recovery options.


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