Citi Faces $270 Million Loss; ‘In Panic’ Over Chinese Port Commodity Fraud

Citi Faces $270 Million Loss; “In Panic” Over Chinese Port Commodity Fraud

Despite the near-record scream higher in Chinese stocks over the last few months, under the surface China is rattled and nowhere is that more evident than in the collapse of its commodity-backed ponzi-financing deals. Since we first uncovered the fraud at the port of Qingdao, another has appeared that is just as fraud-ridden – Penglai; and Citi and Mercuria Energy are arguing over who pays. According to Mercuria’s lawyer Graham Dunning, Citi was “in a state of panic,” when they uncovered the fraud. As Bloomberg reports, Dunning exclaimed “it appears that substantial quantities may be missing from the warehouses or may be the subject of multiple pledges,” and the bank says it is owed at least $270 million. Other ‘banks’ have been less forthcoming about their potential losses, but the government probe has so far uncovered almost $10 billion in fraudulent trade, including irregularities at Qingdao, according to the country‚Äôs currency regulator.

 

1 thought on “Citi Faces $270 Million Loss; ‘In Panic’ Over Chinese Port Commodity Fraud

Leave a Comment