A FINRA panel has ordered Citigroup and one of its former branch managers to pay $11 million to John Fiorilla, a "legal adviser" to the Holy See. On Wall Street reports Fiorilla brought his business to Citigroup in 2006 and requested the firm hedge his $16 million exposure to RBS.
Despite repeated pleas to hedge the stock, the firm did not, according to Fiorilla's lawyer.
When the market crashed in 2008, the value of the account held by the Pope's pal plunged by more than $15 million.
From On Wall Street:
The claim accused the firm of "breach of fiduciary duty, negligence and gross negligence, failure to supervise and control, breach of contract," and other legal violations. It also named a former branch manager, Edward J. Mulcahy, for failing to supervise. Fiorilla's broker was not named because he had cooperated and had been told by others at Citigroup that the account would be de-risked, Conway said.
"We are disappointed with the award, which was not supported by the facts," Citigroup told On Wall Street.
Read the full report at On Wall Street
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