CNN Money is reporting that Enron is seeking $20B from Citi in a lawsuit recently filed.
Let’s get this out of the way first: Yes, Enron still exists! But it’s called Enron Creditors Recovery Corp., it has just 36 employees, and it exists for one reason: to pay creditors. To date, those creditors have gotten 36 cents on the dollar, double the original estimate, which Enron has paid by selling assets such as pipelines and power plants — and extracting money from Wall Street banks that, like Citi, helped Enron fool the world.
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This campaign against Wall Street began in 2003, when Enron filed a suit that it aptly called Mega Claims against 11 banks, alleging that they helped manufacture its financial statements. Nine of the 11 settled, paying what Enron says is $1.7 billion in cash (some of this was payment for claims the banks took back) and giving up almost $1 billion more in claims. A small case remains against Deutsche Bank — and a big one remains against Citi. “We believe the suit is without merit, and we intend to defend against it vigorously through the courts,” says Citi.
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