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A $430 million lawsuit against Citigroup Inc. (C) units by the liquidator of Bernard Madoff’s firm belongs in bankruptcy court because it deals with standard bankruptcy-law issues, the Securities Investor Protection Corp. said in a district court filing in Manhattan today.
Citigroup wants to move the suit to district court, saying the bank’s transactions with Madoff feeder funds consisted of a margin loan that was repaid in March 2008 and a swap and securities sale, both of which are protected by so-called safe- harbor laws designed to uphold securities contracts.
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