Citigroup to pay $13.7m in arbitration

PHOTO: Citigroup to pay $13.7m in arbitration

Citigroup Inc was ordered to pay US$10.75 million (S$13.7m) to a former customer over losses from investments in Royal Bank of Scotland Group PLC, which was bailed out after 2008 financial crash, The Financial Industry Regulatory Authority ruled.

FINRA, Wall Street's industry-funded watchdog, also ordered Edward Mulcahy, a former Citigroup broker, to pay $250,000 to the investor, John Leopoldo Fiorilla, according to a July 30 ruling.

Mulcahy left the New York based lender in 2009 and is currently employed with Morgan Stanley.

FINRA did not release details of how it came to its ruling, as is typical of securities arbitration decisions.