Citigroup lost most than $US150 million when the Swiss government decoupled its currency from the euro this week, Bloomberg reports. The head of European investors sales and foreign exchange is said to leave the bank as well.
The problem here is that the Swiss Franc decision was sudden and violent. Some small brokerages were completely eviscerated by the move, while large firms like Deutsche Bank (said to have lost $US150 million) and Barclays (said to have lost tens of millions) were also impacted.
Reports also indicate that Jefferies may be in talks to buy
FXCM, the largest retail currency broker in the US.
This is not a good time for Citi to lose money. The bank just reported dismal earnings due, in one part, to legal fees, and in another part to a slump in trading. Trading revenue overall was down 14% in the fourth quarter of 2014 from the same time last year.
This $US150 million hit means Q1 2015 may not be looking so hot either.
For now, though, the stock isn’t even blinking.