Tuesday, 31 May 2016
Last updated 3 days ago
Mar 12 2008 | 8:20am ET
Citigroup has been forced to bail out six more hedge funds, to the tune of $1 billion. The Wall Street giant has poured $1 billion into its ASAT Finance and MAT Finance funds.
The $15 billion funds have been hard-hit by volatility in the municipal bond markets.
Citi committed an additional $400 million to the funds, after they had burned through $600 million provided by the bank to allow them to keep trading and meet margin calls.
Earlier this year, Citi had to bail out its CSO Partners hedge fund with a $100 million capital injection, and it also had to provide a $500 million line of credit to its Falcon Strategies hedge funds to keep them afloat.