Citigroup ordered to pay $10.8 mn for soured RBS investment

An arbitration panel found the New York-based lender liable to pay a customer over his losses on investments in RBS

Citigroup Inc, the third-largest US bank, was ordered to pay $10.8 million to a customer over his losses on investments in Royal Bank of Scotland Group Plc.

A Financial Industry Regulatory Authority arbitration panel found the New York-based lender liable, and also ordered Edward Mulcahy, a former employee, to pay $250,000 to the investor, John Leopoldo Fiorilla, according to a July 30 ruling. Shares of RBS plummeted during 2008's credit crisis as the firm took £45.5 billion ($69 billion) from taxpayers in the largest bank bailout in history.

"We are disappointed with the award, which was not supported by the facts," Danielle Romero-Apsilos, a spokeswoman for Citigroup, said in an email.