New York City is expected to take its securities lending fight with Citibank to court – and has also undertaken a search for a new custodian. New York City’s pension funds last week sued several banks, accusing them of aiding bankrupt health-care finance company National Century Financial Enterprises in a “ponzi scheme” that cost the funds more than $89 million. Citibank was the City’s custodian and securities lending agent, and the loss occurred through investments in its cash collateral reinvestment program.
New York City Pension Funds Looking To Resolve Securities Lending Cash Collateral Reinvestment Loss In The Courts
New York City is expected to take its securities lending fight with Citibank to court and has also undertaken a search for a new custodian. New York City's pension funds last week sued several banks, accusing them of aiding bankrupt
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