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Citi's £100M Credit Line to Interbridge Mortgages

Bloomberg Markets •
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Citigroup Inc. provided a £100 million ($134 million) funding line to Interbridge Mortgages, a UK lender backed by Paresh Raja, just as his Market Financial Solutions Ltd. was on the verge of collapse. The timing of this credit line raises questions about Citigroup's due diligence and risk assessment practices.

Interbridge Mortgages, described as a fast-growing lender in the UK market, received the substantial credit facility from Citigroup despite the mounting troubles at Market Financial Solutions Ltd., another company under Raja's control. This connection between the two firms and the timing of the credit line suggests potential oversight or risk assessment failures at Citigroup.

The revelation of this credit line comes amid growing scrutiny of lending practices and risk management in the financial sector. Citigroup's decision to extend such a significant credit facility to a company linked to a founder whose other business was collapsing could have serious implications for the bank's reputation and financial standing.