Citigroup sells unit to comply with Volcker Rule

Citigroup has sold its Metalmark Capital private-equity unit to comply with the Volcker Rule.

Bloomberg reports that Metalmark will no longer be an affiliate of Citigroup, the firms said Monday in a statement.

Citigroup will keep limited-partner interests in the Metalmark Capital Partners II fund, according to the statement. Terms weren’t disclosed.

Citigroup CEO Michael Corbat, 53, is among U.S. bank chiefs grappling with the Volcker Rule, which was formally adopted by regulators this month and seeks to stop lenders with federally insured deposits from making bets with shareholder cash.

The rule keeps banks from investing more than 3% of Tier 1 capital in hedge or private-equity funds or owning more than 3% of the fund.

To access the complete Bloomberg article hit the link below:

Citigroup Divests Metalmark Stake to Comply with Volcker

Goldman Sachs Wins Bond Investors to Flexible Mutual Fund

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