On Monday, Northern Trust Bank, known as Chicago’s Gray Lady, or Northern Rust, which was ranked by Forbes in 2010 as the world's most admired company in the "Superregional Banks" category, was sued by the state of California. The Chicago-based firm is accused of making high-risk investments in mortgage-backed securities with money from the L.A. City Employees' Retirement System, losing $95 million on that bet and then demanding payment from the pension fund. According to the complaint, the firm's strategy was "heads we win, tails you lose," because Northern Trust took a share of the profits from its investments but stuck LACERS with the losses.
The firm did not return calls for comment.
Find out more at http://www.huffingtonpost.com/2012/02/07/banks-punished-misdeeds_n_1259413.html
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