Among Vikram Pandit’s last jobs as Citigroup Inc.’s chief executive officer was to decide the fate of the bank’s hedge-fund unit, which employs some of his oldest colleagues. He agreed to give them most of it for free.
Citigroup Inc. has moved Ramakrishna Putcha, a former proprietary trader, into an internal hedge fund that makes bets with about $200 million of the firm’s money after the portfolio slid 14 percent last year.
JPMorgan Chase & Co.’s deal to settle a U.S. regulator’s claims that the bank misled buyers of mortgage-linked securities before the housing market collapsed echoed a case brought last year against Goldman Sachs Group Inc.
Citigroup Inc. , which took a $45 billion U.S. bailout after losses on subprime home loans, is boosting profits from a hedge fund that bets the bank’s money on mortgage debt -- a practice regulators plan to restrict.
Citigroup Inc., the third-biggest U.S. lender, invested about $800 million of shareholders’ money in its own private-equity and hedge funds during the third quarter as regulators seek to curtail the practice.