Economic Times – Citigroup may move a team of proprietary traders into its hedge-fund unit, one of at least three alternatives the US bank is studying to comply with the Dodd-Frank Act, people briefed on the matter said.
Traders in the Citi Principal Strategies unit, led by Sutesh Sharma, would be reassigned to Citi Capital Advisors, which mostly oversees money for outside investors, said the people, speaking anonymously because the talks are preliminary. The bank would set up the traders as hedge-fund managers and seed their funds, then raise money from outside investors to redeem its stakes, the people said.
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