Banks to pay out billions to Enron shareholders
Civil lawsuit alleged banks helped Enron hide losses
In the same week that former Enron bosses were found guilty of fraud and
conspiracy, shareholders of the collapsed company have been awarded a $6.6bn
(£3.5bn) payout, following a settlement reached with three banks.
The settlements include $2.4bn (£1.28bn) from Canadian Imperial Bank of
Commerce, $2.2bn (£1.17bn) from JP Morgan Chase and $2bn (£1bn) from Citigroup.
This brings the total amount of money returned to shareholders to about $7.2bn
(£3.85bn), when settlements with Lehman Brothers and Bank of America are
Around 50,000 shareholders held Enron securities between September 1997 and
December 2001 and are estimated to have collectively lost $40bn (£21bn) when the
Banks that have yet to settle include UK banks, Barclays and the Royal Bank
of Scotland as well as Merrill Lynch, Credit Suisse, Toronto-Dominion Bank and
the Royal Bank of Canada.