Matt Carpenter and Matt Newton resigned this week from jobs running a proprietary trading unit for Citigroup.
They’re leaving for a hedge fund, sources told Reuters.
Many fear a bank-wide exodus if some version of the Volcker Rule Obama proposed last week passes through Congress.
The rule proposes to ban banks from investing in PE firms, hedge funds, and prop trading operations.
Banks’ prop trading desks will likely face at least some regulation soon, and they could conceivably be completely eliminated by some version of the Volcker Rule (though they probably won’t be).
Guess these guys didn’t want to wait around to see if their desk gets shut down by Citi.
Image credit: flickr, Odd.rey