The settlement ends the legal dispute between both parties.
Vestia previously reached settlements with accountants KPMG and Deloitte who jointly paid € 25 million, with Deutsche Bank for € 175 million, with ex-CEO Erik Staal and six supervisory directors together for € 4.8 million and with ABN Amro for € 55 million, as a result of which Vestia’s settlement counter will be set at € 307.5 million. The corporation is still in talks with four other banks.
Between 2005 and 2012, the American Citibank sold tens of millions of euros of derivatives to Vestia from their London branch. The trade was conducted through a fraudulent bribe arrangement by intermediary Arjan Greeven and Vestia cash manager Marcel de Vries. Due to the sky-high mountain of derivatives, the housing association almost went bankrupt in 2012 with a derivatives loss of € 2.5 billion. Intermediary Greeven turned to the judicial authorities out of remorse and confessed to the bribe. The two were sentenced to long prison terms.
As a result of the derivatives scandal, Vestia is still in serious financial trouble nine years later. It was recently announced that the corporation will be split up into three separate organizations in order to uncover the leak. Despite an earlier rescue and hard budget cuts, the corporation had not succeeded so far.
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Citibank puts Vestia at € 300 million | Financial
Source link Citibank puts Vestia at € 300 million | Financial