Enron suit: A new tempest for Citi?

(Fortune Magazine) — “When Enron blows up, will it be worse than Long-Term Capital?”

So wrote one Citigroup banker to another in April 2001, some seven months before Enron’s bankruptcy. That e-mail is, of course, a vivid reminder of two big blowups that rocked the capital markets. But — surprise! — it’s not just a remembrance of things past.

The e-mail is also part of a series of lawsuits filed against Citi after Enron’s bankruptcy, one of which is supposed to go to trial this spring, in which Enron — or what remains of it — is seeking more than $20 billion from Citi. In the inflated numbers, the aggressive posturing, and the mind-numbing complexity, the lawsuit itself is totally Enronesque. The funny thing, though, is that this time around it’s not clear which actor is playing Enron.

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