BusinessWeek - Mar 15, 2010Citigroup Inc. (C)
-
Bradley Hintz
at
Sanford C. BernsteinThe New York based bank will replace some or all of the six portfolio managers and analysts who left since their leader, Matt Carpenter, quit in February, according to two of the people, who declined to be identified because the unit's operations are confidential.
Citigroup is trying to preserve the unit, which produces about $100 million of annual revenue, as banks face a proposed ban on proprietary trading dubbed by President Barack Obama as the Volcker rule. Chief Executive Officer Vikram Pandit fed concern among the unit's remaining employees that
Citigroup's commitment might wither under U. S pressure when he told a bailout oversight panel this month that banks shouldn't use their own money to speculate, the people said.
"Vikram the academic can put on his academic hat and conclude that the Volcker rule makes sense," said Brad Hintz, an analyst for Sanford C. Bernstein & Co who follows the securities industry. "On the other hand, the Volcker rule hasn't been passed, nobody knows what the capital rules are going to be, so why on earth not take advantage of it?". Moore Capital.
Share:
The New York based bank will replace some or all of the six portfolio managers and analysts who left since their leader, Matt Carpenter, quit in February, according to two of the people, who declined to be identified because the unit's operations are confidential. <span class="company">Citigroup</span> is trying to preserve the unit, which produces about $100 million of annual revenue, as banks face a proposed ban on proprietary trading dubbed by President Barack Obama as the Volcker rule. Chief Executive Officer Vikram Pandit fed concern among the unit's remaining employees that <span class="company">Citigroup</span>'s commitment might wither under U. S pressure when he told a bailout oversight panel this month that banks shouldn't use their own money to speculate, the people said.<span class="sent"> "Vikram the academic can put on his academic hat and conclude that the Volcker rule makes sense," said <span class="analyst">Brad Hintz</span>, an analyst for Sanford C. Bernstein & Co who follows the securities industry.</span> "On the other hand, the Volcker rule hasn't been passed, nobody knows what the capital rules are going to be, so why on earth not take advantage of it?". Moore Capital.
Tweet this
