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 $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.