Citi Group is neck deep in bad loans and is looking at $180 Million in losses. On 2nd October 2013, the CEOs arrived at the White House for a meeting. This was with the then president of USA Mr. Barack Obama.
What was discussed in the White House?
The meeting was of the Financial Services Forum.
The CEOs that were involved and who arrived at the White House were, Micheal Corbat the CEO of Citigroup, Jay Hooley State Street Corporation’s Chairman, Gerald L. Hassell the CEO and Chairman of the Bank Of New York Mellon and CEO of the Bank of America Mr. Brain Moynihan .
According to Bloomberg which published in a report that Citigroup in the present time is facing losses. These are on loans to the hedge funds of Asia of around 180 million dollars.
Citigroup’s board is wrestling with losses that are significant. It is already shivering the unit that is responsible for it though the situation is fluid.
According to a report the FX brokerage unit of the Citigroup is prime. It is responsible for lending to the hedge funds. But it will be pulled away from the division of currency trading. Instead it will be put under its division of securities services and division of prime finance.
Who all are abandoning the sinking boat
The twenty year veteran of Citigroup, Sanjay Madgavkar was the head of the FX Prime brokerage unit. He is now abandoning the firm.
He is going to be replaced by Mr. Chris Perkins. Perkins is currently serving as the head of the over the counter clearing.
The market revenue of the bank has recently in the fourth quarter taken a hit. This had especially affected the rates and currencies in the already volatile markets.
Because of this there can be a great loss for the bank as it may not be able to hit its target for the year 2018 efficiently.
This news had been announced by the CEO John Gerspach.