February 12, 2024 12:27 GMT
Citigroup; Fed Notices Unlikely To Be A Spread Mover
Citigroup (C US) is being reported as subject to Fed action around counterparty trading risk. Shouldn’t be a spread-mover nor does this appear linked to US real estate.
- Reuters is reporting three notices were issued to Citi in late-2023 covering changes to its method for measuring trading partner default risk in its derivatives business. It is also being reported that, in Dec-23, Citi’s internal audit raised issues around consent orders which date back to Oct-20.
- Citi is, again, launching an effort to streamline itself, under new CEO Jane Fraser, so whilst these revelations are unwelcome, the broader direction of Citi as a credit name surrounds explicit credit risk, alongside that simplification and streamlining strategy, we feel.
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