|
|
Article: Citi-BT suit may affect sharing of credit data. (Citicorp, Bankers Trust New York Corp.)
- Article from:
- American Banker
- Article date:
- March 28, 1995
- Author:
CopyrightCOPYRIGHT 1995 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
A dispute among banks that normally would be resolved behind closed doors is headed for a public airing, after a recent court ruling that Citicorp may proceed with a $243 million lawsuit against Bankers Trust New York Corp.
In the case before New York State Supreme Court, Citicorp is alleging that false information from Bankers Trust on the credit status of Chicago businessman William J. Stoecker resulted in losses of $143 million from several loans made in 1987 and 1988.
Just two years after Citicorp made the loans, Mr. Stoecker and his holding company, Grabill Corp., filed for bankruptcy.
Citicorp is seeking reimbursement plus $100 million in punitive ...