SINGAPORE, May 19 - Singapore-based businessman Oei Hong Leong
has sued Citigroup's <C.N> private bank for negligence and
misrepresentation after he lost S$1 billion on foreign exchange and
bond trades last year, the Straits Times reported on Tuesday.
Oei's lawsuit said Citi, with which he has a 30-year
relationship, repeatedly gave him an inaccurate picture of his
trading exposure, which led him to take on more positions than he
would have taken otherwise, the newspaper said, citing court
documents. It said Oei declined to comment about the court
case.
A spokesman from Citi told Reuters in an email: "We believe that
the claim is without merit and we fully intend to defend our
position vigorously." It declined to comment further on the
matter.
There was no immediate comment available from Oei's office.
Oei was ranked Singapore's 29th richest person by Forbes last
year with a net worth of $210 million. Forbes calculated Oei's
wealth based on his stakes in publicly traded companies and in
private company filings.
According to Straits Times, Oei claimed he felt compelled to
close his positions at an extremely volatile time in October last
year, taking huge losses, as he felt he had no choice after
discovering the full extent of his exposure.
Some angry Asian private banking clients have filed lawsuits
after losing money on complex financial products battered in a
global market meltdown last year, forcing the industry into damage
control.
--Reuters