Citigroup moves to block new arbitration by Abu Dhabi fund | Reuters

Citigroup moves to block new arbitration by Abu Dhabi fund | Reuters:

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A Citi sign is seen at the Citigroup stall on the floor of the New York Stock Exchange,

 October 16, 2012.

Credit: Reuters/Brendan McDermid

Citigroup Inc (C.N) has gone to court to block a new effort by Abu Dhabi Investment Authority to pursue an arbitration over a $7.5 billion investment the sovereign wealth fund made in the bank amid the subprime mortgage meltdown in 2007.

In a complaint unsealed Tuesday in U.S. District Court in New York, Citigroup said that by filing a claim last month, ADIA had made an "assault" on a federal court ruling in March that upheld the bank's win in an earlier international arbitration.

ADIA in the initial arbitration accused Citigroup of fraud and sought $4 billion.

Only after losing that case did ADIA discover it had more grievances stemming from its investment, Citigroup said in its complaint."

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