CEOs arrive at the White House in Washington, October 2, 2013, for a meeting of the Financial Services Forum with U.S. President Barack Obama. Pictured (L-R) are Michael Corbat, CEO of Citigroup, Brian Moynihan, CEO of Bank of America, Jay Hooley, chairman of State Street Corporation, and Gerald L. Hassell, chairman and CEO of The Bank of New York Mellon.
- Citigroup is facing $180 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 $180 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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