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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (4453)	8/13/2002 4:14:16 PM
From: Jim Willie CB	Respond to of 89467

Citigroup Served with WorldCom Subpoena, Reuters Tuesday August 13, 2002 [ME: get ready for more shareholder lawsuits the fraud level went from $3B to over $7B quickly last week Citi got sued by Enron shholders for failed disclosure this Citigroup is a walking talking bankrupt corporation] WASHINGTON (Reuters) - A House of Representatives committee said on Tuesday it served a subpoena on financial services giant Citigroup Inc. (NYSE:C - News), demanding more documents related to its links to bankrupt WorldCom Inc. The House Financial Services Committee said it is seeking details on "purchase or acquisition of initial public offering shares by WorldCom Inc. executives of companies underwritten by Salomon Smith Barney," investment banking unit of Citigroup. Salomon telecommunications industry analyst Jack Grubman recently told the committee that "he did not know and did not recall whether WorldCom executives were provided special access to IPOs," according to a committee statement. In testimony before the panel, chaired by Ohio Republican Rep. Michael Oxley, Grubman added, "But I can't categorically say it didn't happen." Oxley issued the subpoena with Congress in recess with agreement from ranking committee Democrat John LaFalce of New York, the committee said. On July 8, the committee held the first of several congressional hearings on accounting problems at WorldCom, the Mississippi-based long-distance telephone and Internet traffic carrier that filed for bankruptcy on July 21. Oxley said last week that a July 23 request to Citigroup for documents elicited an inadequate response. The House committee has been probing the $7.68 billion accounting scandal at WorldCom and Grubman, who had "buy" ratings on the company's stock long after its financial position began to decline. Citigroup has said it is cooperating with the inquiry. -end-