Reuters - Citi cut back on risk as markets wobbled

Citi Building Sign

Citigroup's decision may have been prescient.

Reuters reports that over the summer, as the U.S. stock market wobbled and then plunged 4% in a day, Citigroup made a tough choice: to dial down risk-taking in the bank's capital markets group.

Phil Drury and Doug Adams, then co-heads of U.S. equity capital markets focused on block trading, a corner of the trading business where razor-thin margins can quickly turn to big losses when markets sour, according to people close to the matter.

Citi plunged in the rankings for that part of the market during the third quarter to number eight, according to data provider Ipreo. The previously unreported numbers mark a big drop for a bank that has topped the list for U.S. block trading in seven of the last 11 quarters.

Citigroup's decision to scale back block trades in the third quarter was not influenced by any trading losses, people familiar with the matter said.

Hit the link below to access the complete Reuters article:

Citi dials down risky block trading amid market turmoil

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