Citigroup is reportedly staring down $180 million in losses from loans gone sour to an Asian hedge fund — and a senior exec is out

  • 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.

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