Tuesday, 30 August 2016
Last updated 13 hours ago
Feb 25 2008 | 1:00am ET
Citigroup has extended a half-billion dollar lifeline a group of its hedge funds rocked by the credit crunch.
The Wall Street giant said late Friday that it has provided a $500 million line of credit to its Falcon Strategies hedge funds. The bank has also consolidated the funds’ $10 billion in assets and liabilities on its own balance sheet.
The Feb. 20 decision comes after the funds lost approximately 30% last year. A new, levered version of the Falcon funds plummeted by more than 50% in its first three months of trading.
The hedge fund bailout is the second for Citi in as many months: The bank propped up its CSO Partners fund last month with $100 million, after suspending withdrawals.