MADRID - CITIBANK said on Thursday it had reached an agreement to pay 42.9 million euros (S$80 million) in compensation to Spanish clients who lost money in investments made through the US bank in failed investment group Lehman Brothers.
In a statement, the Spanish branch of the US bank said it would buy 55 per cent of the nominal value of the Lehman Brothers financial products that it sold to 2,700 investors for a total amount of 78 million euros.
The affected investors who accept the offer will receive the compensation payment until May 7, the bank said in the statement, also signed by the two law firms that had filed a complaint against Citibank in 2009 and the association of bank, savings and insurance company users Adicae.
'The main objective of this offer is to protect our clients,' the president of the Spanish branch of Citibank, Mr Joel Kornreich, said in the statement.
Adicae said it backed the voluntary agreement, saying it was 'certain that the vast majority of those affected will ratify it'. Former Wall Street icon Lehman Brothers collapsed in September under mountains of debt, shocking the financial world and causing thousands of people around the world to lose their savings.
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