Citigroup shareholders should cry about Argentina

Fortune

Citigroup’s twists and turns with Argentina could make a good soap opera, though perhaps not a musical.

On Wednesday, Argentina announced it was suing Citi [fortune-stock symbol= »C »] over a deal the bank struck late last month with group of hedge funds. But Citi officials probably knew that Argentina was upset with the global bank. Over the past few weeks, Argentina has banned Citi from its capital markets. It has forced the bank to fire the CEO of its Argentina business. Argentina’s financial regulators have also announced that they are reviewing whether Citi has enough capital to continue to do business in the country.

The government’s actions against the bank are just the latest moves in a long-running fight between the Latin American nation and a group of bond holders who have fought a long-hatched Argentina debt restructuring plan that would deny the investors billions of dollars. In general, countries are…

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