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CITIBANK RESPONSE TO ACTION ON CANCELED CERTIFICATES

 CITIBANK RESPONSE TO ACTION ON CANCELED CERTIFICATES
 NEW YORK, June 25 /PRNewswire/ -- Citibank today consented to an


order by the comptroller of the currency, without admitting or denying the allegations and findings, arising from canceled certificates thought to have been destroyed six years ago, some of which have surfaced. These certificates have no financial value and were canceled by Citibank as transfer agent after they had been presented.
 Citibank believes it has no material financial exposure to any of these canceled certificates.
 As previously reported, Citibank discovered that a number of canceled certificates thought to have been destroyed by an outside destruction firm in 1985-86 have reappeared and some have been fraudulently presented for transfer or possibly offered as collateral for loans. Citibank has worked with the Federal Bureau of Investigation, the Drug Enforcement Agency and Interpol on the investigation, and also has notified the Securities Information Center, the Depository Trust Company, the New York Stock Exchange, the National Association of Securities Dealers and SWIFT about the canceled certificates.
 Citibank used an outside destruction firm six years ago to dispose of an unusually large volume of canceled certificates that had been in storage, and received affidavits from the firm attesting to their destruction. The canceled certificates that have reappeared were from among those believed to have been destroyed by that firm.
 Since 1987, Citibank has performed all destruction of canceled certificates with its own personnel on its own premises.
 Citibank believes that it has in place sound procedures and controls for canceling and destroying certificates, as well as reporting procedures in the event of stolen or missing securities, and that it already is in substantial compliance with the actions called for in the comptroller's order. While Citibank has been censured by the comptroller, no fines have been imposed.
 Citibank conducted its own investigation and has cooperated fully in the investigations of the Office of the Comptroller of the Currency and the staff of the Securities and Exchange Commission.
 Citibank is a leader in securities processing, one of the core businesses of the worldwide financial institution.
 -0- 6/25/92
 /CONTACT: Amy Dates, 212-559-7608, or John M. Morris, 212-559-4285, both of Citibank/ CO: Citibank ST: New York IN: FIN SU:


TS -- NY022 -- 3650 06/25/92 09:34 EDT
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Publication:PR Newswire
Date:Jun 25, 1992
Words:378
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