Thursday, 20 October 2016
Last updated 17 hours ago
Nov 7 2007 | 8:23am ET
Citigroup has turned to a man who once helped it avert disaster at Long Term Capital Management to now aid in extricating itself from the subprime mess.
Richard Stuckey, who heads Citi’s fixed-income, currencies and commodities division, was named head of the firm’s new Sub-Prime Portfolio Group. Citi’s $55 billion in subprime exposure is expected to cost it as much as $14 billion in write-downs, and has already cost former CEO Charles Prince his job.
A decade ago, Stuckey was Citigroup’s representative to the group of 14 financial institutions working on the bailout of LTCM, which lost $4.6 billion in four months in 1998—at the time, the worst-ever hedge fund collapse.