Financial Biz Cheat Sheet: Citigroup Under Investigation in Japan, Moody’s Questions Dexia’s Liquidity
Citigroup (NYSE:C) is being investigated by Japanese regulators for possible infractions related to its marketing of financial products. Citigroup was punished for the same violation in 2009, and forced to suspend retail marketing activities for a month.
Morgan Stanley (NYSE:MS) shares have been trading down due to a report on derivatives exposure that implied the company had $1.78 trillion in exposed derivatives. However, the real exposure is $457 million, said Matt Burnell of Wells Fargo (NYSE:WFC). Morgan Stanley’s CDS have leaped to 528 bps, worse than even the troubled large Italian lenders.
Franco-Belgian lender Dexia is trading lower following a Moody’s report questioning its liquidity. The bank has 3.4 billion-euro exposure to Greece, the most of any European bank.
In its 74th closing this year, the FDIC closed the First Intl. Bank of Plano, Texas, with $240 million of assets to be assumed by American First National Bank of Texas.