Citigroup to Lose At Least $150 Million on Forex Trading -- Source
January 16 2015 - 2:22PM
Dow Jones News
By Christina Rexrode
Citigroup Inc. is expected to lose more than $150 million due to
the wild swings in Switzerland's currency, according to a person
familiar with the matter.
The New York firm's currency-trading desk is among those that
incurred sizable losses after the Swiss National Bank unexpectedly
removed the cap on the Swiss franc's value.
Citigroup is also one of the biggest prime brokerages for FXCM
Inc., the foreign-exchange broker that is trying to shore up its
capital with a potential rescue package involving Jefferies Group
LLC, according to a person familiar with the matter.
On Friday afternoon, Citigroup and other brokers were waiting to
see if the Jefferies rescue would go through. The brokers were
holding informal talks about what they might do if that rescue plan
falls apart, the person said.
A Citigroup spokesman declined to comment.
Write to Christina Rexrode at christina.rexrode@wsj.com
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