Restrictions imposed on Citi's hedge fund sales


Due to Citigroup's (NYSE:C) $285M fraud settlement earlier this month, the bank will no longer be able to sell investments in hedge funds and private-equity funds to private clients.

The restriction is the result of the "bad actor" rule adopted by the SEC in July of last year, which bars companies or individuals with a criminal conviction that occurred after September 2013 from participating in private offerings.

Citigroup's private bank manages $310B, with clients being required to have a net worth of at least $25M.

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Comments (3)
  • Cygnusx3
    , contributor
    Comments (241) | Send Message
     
    This sounds ominous. What does it mean in terms of future earnings.
    22 Aug 2014, 01:59 AM Reply Like
  • User 13912732
    , contributor
    Comments (3) | Send Message
     
    Considering their Private Bank leans heavily on hedge fund sales and PE funds for revenue, I would assume this is prime time for Private Bankers and clients alike to jump ship
    22 Aug 2014, 09:29 AM Reply Like
  • Hardog
    , contributor
    Comments (17051) | Send Message
     
    sounds good to me they are a loser.
    22 Aug 2014, 10:22 AM Reply Like
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