As Argentina and Hedge Funds Battle, Citigroup Bows Out
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Judge Thomas P. Griesa of the Federal District Court in Manhattan has prevented Citigroup from making interest payments to investors holding Argentine notes. CreditPablo Corradi/La Nación
The nasty battle between Argentina and a group of New York hedge funds has claimed another victim:Citigroup.
The bank said on Tuesday that it would shut its custody business in Argentina after a federal judge in New York last week rejected its request to lift an order that prevented the bank from making interest payments to investors holding $2.3 billion in Argentine notes.
Citing an “unprecedented international conflict of laws,” Citigroup said its Argentine branch was making plans to close the custody business “as soon as possible,” according to a statement emailed on Tuesday. It will continue to pursue “all legal remedies,” the bank added…
As Argentina and Hedge Funds Battle, Citigroup Bows Out
