An arbitration panel has denied fraud claims against Citigroup Global Markets, Morgan Stanley & Co. and others brought by Detroit's Police and Fire Retirement System, which is seeking $39.9 million in damages, Reuters reported yesterday. The three-member panel of the Financial Industry Regulatory Authority, an independent regulator of U.S. securities firms, denied and dismissed on Wednesday all of the claims the pension fund filed against the banks in May 2010. The fund accused the banks of fraud and breaching contracts and their fiduciary duty over their recommendations to invest in various collateralized debt obligation funds. The pension fund, which reported net assets of $2.9 billion at the end of fiscal 2012, had been seeking $39.9 million in actual and compensatory damages.
