Citigroup, the third-biggest U.S. lender, said it’s closing a proprietary-trading unit that incurred losses in the third quarter, as regulators prepare to restrict banks from making bets with shareholder cash, Bloomberg reports.
The company is almost “two-thirds done” winding down the Equity Principal Strategies unit, CFO John Gerspach said yesterday in a conference call with analysts. Market turmoil caused a revenue decline for the unit, which suffered losses as it exited trading positions, Gerspach said.
CEO Vikram Pandit is shutting the business as lawmakers draft the so-called Volcker rule, which aims to restrict banks from making bets with shareholder money. Other firms including Goldman Sachs Group and Morgan Stanley already have exited similar businesses.
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Find out more at http://www.bloomberg.com/news/2011-10-17/citigroup-plans-to-shutter-proprietary-unit-after-rout-in-equity-trading.html
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