Still $hiti

[marmar]

from the Financial Times:



Citi to relaunch troubled hedge fund unit
By Henny Sender and Francesco Guerrera in New York

Published: November 6 2009 00:01 | Last updated: November 6 2009 00:01


Citigroup is poised to relaunch the unit containing its troubled hedge fund operations after nearly two years of poor performance, internal strife and investor unrest.

People close to the situation said that the company wanted to change the name of the unit – which has $14bn under management and also includes private equity operations – from Citi Alternative Investments (CAI) to Citi Capital Advisors.

The move follows months of wrangling between CAI’s management and some top bank executives about what to do with the unit, underlining the strategic dilemmas facing banks with hedge fund businesses that fell victim to the crisis.

The fate of CAI is particularly sensitive because the unit is closely associated with Citi’s chief executive, Vikram Pandit. The former Morgan Stanley executive joined Citi as head of CAI in 2007 when the bank paid about $800m for Old Lane, a hedge fund that has since folded. John Havens, another veteran of Morgan Stanley and Old Lane, now heads Citi’s securities business and oversees CAI. ........(more)

The complete piece is at: http://www.ft.com/cms/s/0/d832b1dc-ca52-11de-a3a3-00144...

[Soylent Brice]

1. dare i say, give them enough rope...?