Report - 'Panic' as Citi suffers lapse in risk controls

Hedge Fund

An alleged lapse in risk controls on a series of trades said to be worth hundreds of millions of dollars.

A lapse in risk controls on a series of trades from a London hedge fund led to a panic at Citigroup in July that could have cost the bank as much as $400m, the Wall Street Journal said.

Bloomberg News reports that Citigroup clawed back the money over the next three months, the newspaper said Sunday on its website, citing unnamed people with knowledge of the matter.

'As soon as we detected this isolated issue through a regular review process, it was escalated to senior management and we immediately put additional controls in place to prevent a similar event from occurring', Danielle Romero-Apsilos, a Citigroup spokeswoman in New York, said in an e-mailed statement. 'After working with the parties involved, we have recovered all outstanding funds and have no remaining exposure related to this issue'.

To access the complete Bloomberg News article hit the link below:

Citigroup Stumbled Into Risk-Control Lapse in July, WSJ Says

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