BusinessWeek – Citigroup Inc., the bank 27 percent owned by the U.S., is bolstering a unit that trades stocks with the bank’s own money after a proposed government ban of so- called proprietary trading helped spur eight of its 22 employees to defect, people with direct knowledge of the matter said.
Kevin Russell, head of Americas stock trading, told employees and securities firms supporting the unit last week that Citigroup may increase the group’s trading limits and capital, according to the people. 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.
