Citadel Denies I-Bank Shut-Down Report

Oct 8 2010 | 12:08pm ET

Citadel Investment Group is denying rumors that it plans to shutter or seriously shrink its investment-banking unit.

The Chicago-based hedge fund giant was forced to respond after the Business Insider blog reported that there might be major layoffs "connected to a wider dismantling" of Citadel Securities. The blog later backtracked on its report, which included the exits of several top Citadel Securities executives.

"There is no plan for mass layoffs," a person familiar with the situation told Dow Jones. "Citadel is not shutting down Citadel Securities or its fixed-income operations."

In fact, the latter has enjoyed positive trading revenue this year, contrary to reports that it had taken a bath on some high-yield loans.

Dow Jones did note that some staffing changes are possible after Citadel Securities' annual business review in the fourth quarter. And certainly, the upper echelons of the firm's management team has had something of a revolving door, losing two heads within eight months on top of several other high-level departures.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...