Bloomberg News

Citigroup’s Madoff Suit Belongs in Bankruptcy Court, SIPC Says

March 02, 2012

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.

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: Stephen Farr at sfarr@bloomberg.net


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