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Citi reorganizes prime brokerage unit

Citi reorganizes prime brokerage unit
FILE PHOTO: The logo of Citibank is pictured at an exhibition hall in Bangkok, Thailand, May 12, 2016. REUTERS/Athit Perawongmetha   -   Copyright  Athit Perawongmetha(Reuters)
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(Reuters) – Citigroup Inc <C.N> is shuffling its prime brokerage business, according to an internal memo seen by Reuters, amid reports that the unit could lose millions on a bad loan to an Asian hedge fund.

Bloomberg earlier reported that Citi faces a loss of up to $180 million related to risky foreign-exchange bets. Citi and the hedge fund are in talks on how the positions should be valued, the report said.

Citi declined to comment on the reported losses.

Citi, the third largest U.S. bank by assets, will move its foreign exchange prime brokerage business under the same umbrella as its prime financing and securities services business – removing it from the foreign exchange and local markets unit, according to the memo viewed by Reuters.

The business will be led by Chris Perkins, who also oversees the banks’ over-the-counter clearing business.

(Reporting by Imani Moise; editing by Jonathan Oatis)

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