There’s been a lot of speculation about whether or not Citi will lose business around the world if customers decide to turn to banks less dependent on the US government for survival. So far Citi’s retail customers are not withdrawing deposits. But some large international customers are turning away.
We’re told by a person familiar with the matter that yesterday Citi lost custody of fund worth hundreds of millions owned by the government pension plan for the Philippines. The plan’s managers said it decided to pull the funds from Citi after the US government took a larger stake.
Citi had won the business over competition from JP Morgan and State Street in 2007. Now the funds are being moved to JP Morgan.
There are rumours about other funds, particularly sovereign wealth funds, considering leaving Citi. But so far these are just rumours.
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