Financial Business Recap: Citi PAYS To Make Suit Vanish, Barclays Gets a New CEO

Fallout from JPMorgan Chase & Company’s (NYSE:JPM) “London Whale” faux pas caused mutual find managers to divest the shares, and in one sense had the lowest weighting of the stock in their portfolios in at least seven years, according to analysts at Bernstein Research, says Reuters.

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Citigroup Inc. (NYSE:C) will shell out $590 million in resolution of a lawsuit brought by a shareholder lawsuit who alleges that executives misled investors about the bank’s difficulties the financial crisis. The firm still denies the allegations, but also wants to make the case go away. Is this setting a good precedent?

The United Kingdom’s Serious Fraud Office is now into its second criminal inquiry into Barclays PLC (NYSE:BCS). This new investigation looks at payments made under arrangements between the firm and Qatar Holding, during its Middle East capital raising program in 2008. Meanwhile, Barclays has appointed Antony Jenkins as chief executive to replace Bob Diamond, who stepped down as a casualty of the Libor scandal.

Former FBI Director Louis Freeh, who is now trustee for MF Global Holding’s (MFGLQ.PK) parent company, requested Wednesday that the company’s other bankruptcy administrators in the United States and in the United Kingdom reach a “global resolution” with him concerning getting money back for creditors and clients, as opposed to proceeding through expensive and time-consuming litigation.

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