Citigroup buying credit default swaps from rivals

Citi Building Sign

Citigroup has carved out an an improbable niche, given its history of receiving the most federal aid among banks in the wake of the 2008 financial crisis.

Bloomberg News reports that the bank, which already has the most derivatives of any of its U.S. rivals, has been buying credit-default swaps from its European rivals, which are under growing pressure to quickly cut holdings of riskier assets.

Several weeks ago, Credit Suisse said it sold a portfolio of derivatives with a gross notional value of $380bn, which helped the bank reduce its leverage exposure by about $5bn. On Friday, Bloomberg News reporters Jeffrey Vogeli and Donal Griffin reported that Citigroup was the winning bidder.

Citigroup also bought credit derivatives with a notional value of about $250bn from Deutsche Bank last year and was in talks to buy more, Bloomberg reported in March.

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

Citi Stockpiles 'Weapons of Mass Destruction'

Q&A With Tidjane Thiam: ‘I Will Never Declare Victory’

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts