Bloomberg News

Citigroup Trading Losses on 54 Days Include $180-Million Day

February 24, 2012

(Updates with annual trading results starting in the second paragraph.)

Feb. 24 (Bloomberg) -- Citigroup Inc., the third-largest U.S. lender, recorded trading losses on 54 of 260 trading days in 2011, as fixed-income and equities trading slumped amid the European debt crisis and the impending Volcker rule.

Losses exceeded $180 million on one day, the New York-based company said today in a regulatory filing. Revenue from fixed- income and equities trading fell 15 percent to $15 billion compared with 2010. The securities and banking unit is overseen by James “Jamie” Forese.

Chief Executive Officer Vikram Pandit, 55, is firing workers and shrinking costs as the division’s revenue falls. Fixed-income clients reduced their appetite for taking risks because of the year’s “challenging market environment,” while equities revenue was hit by declining performance at the bank’s proprietary trading unit, Citigroup said in the filing. The desk traded securities with shareholders’ cash, a practice regulators aim to restrict under the so-called Volcker rule.

“Macroeconomic concerns, including in the U.S. and the Eurozone, weighed heavily on investor and corporate confidence,” the bank said in the filing. “Compounding this continuing macroeconomic uncertainty is the ongoing uncertainty facing Citigroup and its businesses as a result of the numerous regulatory initiatives underway.”

--Editors: William Ahearn, Steve Dickson

To contact the reporter on this story: Donal Griffin in New York at dgriffin10@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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