Citadel Says Fed Raid rumours Are 'Categorically False'

The Citadel Group, the gigantic Chicago hedge fund, moved quickly to deny rumours this morning that the Federal Reserve and UK financial watchdog FSA were in their offices in what many were saying was a preview of a giant hedge fund implosion.

“Categorically false. We continue to do business as usual around the globe,” Citadel spokeswoman Katie Spring said.

She added that the fund continues to hold 30 per cent of its assets in cash. rumours that Citadel was lobbying for access to the Fed’s discount window were also false, she said.

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