Citigroup, Wachovia face hedge fund lawsuits: report

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NEW YORK (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research) and Wachovia Corp (WB.N: Quote, Profile, Research) are facing separate lawsuits filed in a U.S. Federal court in New York by a small fund, the Wall Street Journal reported on Tuesday.

The suit claims that the banks each improperly required the fund to pay out more money from insurance derivatives contracts known as credit default swaps amid a decline in the value of the mortgage-backed bonds, said the Journal.

Both suits were filed last month by VCG Special Opportunities Master Fund Ltd, a Florida hedge fund with $58 million in capital.

Citigroup and Wachovia were not immediately available for comment.

Reuters