Citigroup Prime Brokerage
Citigroup Prime Brokerage Services - Notes
Here are a collection of publicly available articles related to Citigroup prime brokerage:Resource #1: (6.24.09) Citigroup (C) and Bank of America (BAC) are boosting their prime brokerage groups to take advantage of disruption in the business amid the financial crisis, according to published reports.
Prime brokerage is the business of providing trading and lending services to hedge funds. Citi has added 18 people this year to its global prime brokerage operations, The Wall Street Journal says. BofA, through its recent acquisition of Merrill Lynch, plans to hire 40 employees for its global financing business. The 800-person group includes prime brokerage and securities lending, among other businesses, the Journal says. source
Resource #2 (2.4.09) Citigroup's Andrew Hill, who currently co-heads the firms prime brokerage sales business in Japan, is being relocated to Singapore, a Citigroup spokesperson confirmed to IDD.
In his new role, Hill will work towards building the roster of hedge fund clients in Southeast Asia and India. He will also oversee Citi's US prime brokerage business, and will continue to oversee prime finance sales for Japan.
Hill's specific focus will be on equity and fixed income prime brokerage. He will work alongside Alex Knight, who oversees the foreign exchange prime brokerage business for Citi in Asia. source
Resource #3: (12.6.08) Citigroup has reportedly cut 15% of its Citi Prime Finance staff, including 14 members of its New York office. Five of those took severance packages; the rest were laid off.
As part of the downsizing, Citi’s prime brokerage group will no longer offer business consultancy services to hedge funds, Hedge Fund Alert reports. It remains committed to other services including clearing, securities lending, capital introduction and execution. source
Resource #4: Scores of big hedge funds have been shifting billions of dollars in prime brokerage business away from Morgan Stanley and Goldman Sachs to operations housed in large commercial banks, in what is being viewed as a massive flight to safety, write Greg Farrell and Henny Sender in New York .
Traders at JPMorgan Chase, Citigroup, Deutsche Bank and Credit Suisse are among those who describe themselves as "inundated" with business from hedge fund managers moving their trading and execution away from the last two remaining independent investment banks.
In recent weeks, prime brokerage business had been migrating away from Lehman Brothers, as the market perception of that firm began to worsen.
But after Lehman's collapse into bankruptcy protection on Monday, along with Merrill Lynch's decision to be acquired by Bank of America, the gradual ebb of prime brokerage business away from the independents rose to a flood.
APG, manager of Europe's biggest pension fund, said: "We have stopped stock lending in several American, but also European, banks whose shares face the most downward pressure, among others, from short-sellers." Read more...
