Citigroup Ordered to Pay Pope's Legal Adviser $11 Million for Negligence

Pope Benedict XVI during the welcome ceremony at the Prague Airport, Czech Republic, 26 September 2009.
By Steven Perlberg

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

More from Business Insider:

Increase your money and finance knowledge from home

Investing Like Warren Buffett

Learn from one of the world's best investors.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

Wow, I lost half the value of my account when the market tanked back then and I didn't get a dime of it handed back to me. Nice to know that the wealthy (even the religious one's) are so well taken care of.

August 08 2013 at 11:16 PM Report abuse +1 rate up rate down Reply

Did the Pope try to cheat?

August 08 2013 at 9:15 PM Report abuse -1 rate up rate down Reply

Citi group better pay up with an apology. Otherwise they will lose the Catholic business worldwide. Messing with the Pope's lawyer or friend is a Cardinal sin in the PR world. Which idiots let it get this far anyway..... they should have made sure this account made a profit or settled before it became public.

August 08 2013 at 7:42 PM Report abuse rate up rate down Reply

No ...the LOVE OF MONEY is the root of evil, Money is a tool meant to be your bibles people!

August 08 2013 at 7:13 PM Report abuse rate up rate down Reply

Wow ! They all preach MONEY IS THE ROOT OF ALL EVIL . So what does that make the so called HOLLY ROLLERS at the Vatican. HYPOCRITES !!. HIDING BEHIND RELIGION.

August 08 2013 at 6:47 PM Report abuse +1 rate up rate down Reply

Them people dont need money . thats why they say money is the rule or all EVIL , and i belive that

August 08 2013 at 4:45 PM Report abuse +1 rate up rate down Reply
1 reply to metropolitan100's comment
Jerry Berrios

"RooT" of all evil.

August 08 2013 at 5:30 PM Report abuse +1 rate up rate down Reply
1 reply to Jerry Berrios's comment

'Root Canal' of all evil. Dustin's dentist in the Marathon Man. That was about money.

August 08 2013 at 6:39 PM Report abuse rate up rate down