Citigroup Ordered to Pay Papal Adviser Over Soured RBS Deal
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John Leopoldo Fiorilla, a legal adviser to the Holy See, was awarded $10.8 million plus interest by an arbitration panel over his Citigroup Inc. broker’s handling of an investment in Royal Bank of Scotland Group Plc.
Fiorilla asked Citigroup to hedge his RBS holding of about $16 million before the credit crisis and then saw it dwindle to less than $1 million as the New York-based lender failed to protect him, according to Kevin Conway, his lawyer. A Financial Industry Regulatory Authority arbitration panel found the firm liable for Fiorilla’s losses, according to a July 30 ruling that doesn’t describe the allegations in detail.