Tuesday, 31 May 2016
Last updated 30 min ago
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.