Financial News reports that Citigroup CEO Chuck Prince has had a pop at his capital markets 'boys', expressing his disappointment at the unit's performance in the third quarter.
Citigroup's third quarter profits came in up 6% at $5.3bn, after a strong performance from international banking. Lower fixed income trading and equity underwriting revenues, however, caused net profits in the corporate and investment banking division to fall 4% to $1.7bn. Prince said that 'results from our capital markets-related businesses fell short of my expectations, and I expect improved results from these businesses'.
The Times reports that Prince has also ruled out making a large European acquisition for the time being, putting pay to those rumours that the firm is looking to take over either Barclays Bank or Societe Generale. 'Buying a big bank in Western Europe is not on my agenda', Prince said.
Finally, The Wall Street Journal reports that Charles Craig Gile, 42, the former head of American trading at Citigroup's New York commodities trading desk, has pleaded guilty to conspiring to falsify records to carry out a scheme to inflate trading profits, in a bid to bag a bigger bonus. David Becker, the former head of the bank's worldwide commodities unit, pleaded guilty to similar charges a few weeks back.
Gile, who will be sentenced on February 12th, faces up to 5 years in prison.