Bloomberg reports that Citigroup could lose as much as $180M on loans made to an Asian hedge fund. The hedge fund, which is managed by a unit of GF Holdings Corp. and according to the report, is in discussions with Citigroup on how they s would value their positions give foreign exchange worries.
The matter was escalated to Citigroup’s board, Bloomberg reported. The bank is also reorganizing its prime brokerage business as a result of the expected financial hit, according to the story and is taking the FX prime brokerage unit out of the currency trading division and placing it under the oversight of its prime finance and securities services unit, according to a memo from the bank.