Citigroup has "received a subpoena in connection with the FIFA bribery scandal, making it the first major U.S. bank to disclose a link to probes involving soccer’s governing body," according to Ensign & Matthews of the WALL STREET JOURNAL. Citigroup, which indicated that the subpoena came from the U.S. Attorney for the Eastern District of New York, said that the government "requested information on the lender’s connection to 'certain individuals and entities identified as having had involvement with the alleged corrupt conduct.'" The lender said that it "is cooperating." Prosecutors are "looking at whether the banks should have raised alarms about money flows linked to alleged corruption at FIFA." Sources said that the prosecutors’ office is "still reviewing records turned over by the banks, and the probe could end without any charges being filed" (WALL STREET JOURNAL, 2/26). The AP's Ken Sweet noted when federal prosecutors last year announced corruption charges against 14 current and former FIFA execs, several banks, including HSBC and JPMorgan Chase, were "named as entities that corrupt FIFA officials used to transfer cash." While it was "named in the indictment paperwork, JPMorgan has not disclosed any investigation into its own operations." HSBC last week acknowledged that it is "under investigation by U.S. authorities for its role in the FIFA scandal" (AP, 2/28).
FALLING SHORT: In London, Martyn Ziegler reported FIFA is "facing a financial black hole" of $550M from its revenue target "due to huge legal costs and a fall in sponsorship income after companies turned their back on the scandal-hit governing body." FIFA acting Secretary General Markus Kattner said that the organization had projected revenues of $5B over its '15-18 budget cycle, "but is now running more than half a billion dollars short of that target." Sources said that FIFA has been paying as much as $10M a month to "cover the costs of the lawyers who were brought in last May." In addition, 24 of FIFA's 37 sponsorship slots "remained unfilled" (LONDON TIMES, 2/27). FS1's Rob Stone noted sponsorship is a "big part of FIFA," and there have been some "pretty large companies out there that have pulled away from FIFA" wanting to see how the reform efforts go. FS1's Alexi Lalas said sponsors are looking at the passage of the new reform package "as a positive action, and one that is going to increase your faith in FIFA -- and more importantly your faith in giving FIFA money" ("FIFA Presidential Election," FS1, 2/26).
