- Citigroup is facing $US180 million in losses on loans gone sour to an Asian hedge fund, according to Bloomberg.
- The fund reportedly got battered on foreign-exchange bets that went sideways.
- The bank’s board is reviewing the issue and has already moved to shake up the unit responsible, and a key executive has left the firm after more than 20 years.
Citigroup is reportedly staring down losses of as much as $US180 million on loans to an Asian hedge fund after the fund’s foreign-exchange trades went sideways.
The situation is fluid, but Citi’s board is grappling with the substantial losses and is already shaking up the unit responsible, according to a report from Bloomberg.
Citi’s FX prime brokerage unit – which lends to hedge funds – will be pulled from the currency trading division and put instead under its prime finance and securities services division, according to the report.
Sanjay Madgavkar, a more than two-decade veteran of Citigroup who was head of the FX prime brokerage unit, is leaving the firm. He’s being replaced by Chris Perkins, currently the head of over-the-counter clearing.
CFO John Gerspach revealed earlier this month that the bank’s markets revenues had taken a hit in the fourth quarter, especially in rates and currencies, amid the market volatility, and that the bank may not hit its 2018 efficiency target.
- Citigroup is promoting 125 employees to managing director – we’ve got the internal memo with the full list of names
- ‘We just didn’t do as good a job’: Citi’s stock-trading faltered in the third-quarter – and there’s a clear business to blame
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