Grubman Loses Face -- Again

Citigroup is one of 10 big securities firms now involved in those talks with representatives from Spitzer's office, other state regulatory agencies and the Securities and Exchange Commission. The negotiations are aimed at coming up with a formula for providing ordinary investors with greater access to independent stock research that is produced by firms that don't do any investment banking business.

Citigroup on Wednesday reported in a company filing that the bank and Grubman have been named as defendants in 62 potential class-action lawsuits. Grubman also is a defendant in nearly two dozen arbitrations brought by Citi brokerage customers.

Grubman, who in one year took home a $20 million paycheck from Citigroup, left the bank in August with a $30 million severance package, after becoming the poster boy for Wall Street conflicts of interest. It's believed that Citi, as part of that severance deal, is still paying Grubman's legal fees. Grubman's lawyer, Lee Richards, couldn't be reached for comment.

In recent days, Grubman has provided testimony to investigators from Spitzer's office. Spitzer's office also has been questioning other potential witnesses. A spokesman for Spitzer declined to comment.

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