Banks agreed to pay about $15.5 billion to settle claims by about 720,000 investors outside the U.S. who lost money in Bernard Madoff’s fraud, said the chairman of a group of law firms representing victims.
Citigroup Inc. Chief Executive Officer Vikram Pandit and Pramit Jhaveri, head of the bank’s Indian unit, were cleared by local police of involvement in an alleged $66 million fraud at its branch in Gurgaon.
Jon S. Corzine, MF Global Holding Ltd.’s former chief executive officer, may face potential legal liability if investigators show he knew customer money might be used when he ordered $200 million transferred to a U.K. account as his brokerage neared collapse, Bloomberg News’ Linda Sandler and Phil Mattingly report that former prosecutors said.
Royal Bank of Scotland Group Plc may face additional lawsuits from units of Legal & General Group Plc, Prudential Plc and Standard Life Plc over a 2008 share offering before its bailout by the U.K. government.
Bank of America Corp. is impeding an investigation of its loan modification practices by negotiating settlements with borrowers who must agree to keep them secret and not criticize the bank in exchange for cash payments and loan relief, Arizona officials say.
Germany must face a lawsuit over bonds that defaulted under Adolf Hitler in the 1930s, a U.S. appeals court ruled, saying the nation isn’t immune from the claims and that American courts have jurisdiction to decide whether the bonds are enforceable.