For the second time in a week, a federal judge has blocked a securities arbitration against Citigroup Inc, allowing the bank to avoid fighting a multi-million dollar case before Financial Industry Regulatory Authority arbitrators. Banks have repeatedly challenged whether large plaintiffs can bring cases over damages incurred during the financial crisis as arbitrations before FINRA, the financial industry's self-regulator, rather than in the courts. Some plaintiffs prefer FINRA as a venue, in part because the arbitration process is considered quicker than if a dispute plays out in court. At a hearing on Friday, U.S. District Judge Jesse Furman in Manhattan entered a preliminary injunction preventing North Carolina Eastern Municipal Power Agency from moving forward with an arbitration, a Citigroup spokeswoman said. The case stemmed from the agency's issuance of $223 million in auction rate securities underwritten by Citigroup. Auction rate securities are a type
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