Citi Sues Morgan, Upgrades Goldman
It was a busy week for the government banking entity known as Citi. In one breath, the bank produced a glowing report on rival Goldman Sachs, pointing out the strategic advantage Goldman holds over most of Wall Street in the high-speed frequency trading department:
http://www.ibtimes.com/articles/20090925/goldman-…
In the next breath, they fired a salvo at Morgan Stanley and sued over a swap deal gone south. Sounds like they might actually have a case, too:
http://www.expressbuzz.com/edition/story.aspx?Tit…+CDS&artid=RSc6yaE12ec=&SectionID=XT7e3Zkr/lw=&MainSectionID=XT7e3Zkr/lw=&SEO=citi,+morgan+stanley&SectionName=HFdYSiSIflu29kcfsoAfeg==
Citi purchased a CDS from Morgan on a $366 million revolving credit facility that ended up going bust, and Morgan refused to pay off on the default. Citi paid $750,000 for the swap, and is suing Morgan for the $245.4 million Morgan allegedly reneged on.
Pretty nice trade, if it works out.