Citadel Forced To Deny Collapse Rumors, Again

Nov 10 2008 | 1:24am ET

For the second time in as many weeks, Citadel Investment Group has been forced to deny rumors that it is in serious trouble.

The hedge fund giant, whose flagship fund is down almost 40% this year, denied a Wall Street Journal report that banks were demanding increased collateral as its losses mounted. Gerald Beeson, the firm’s chief operating officer, said Friday that it was meeting its daily collateral requirements with Goldman Sachs, Deutsche Bank, Merrill Lynch and others without being forced to sell its assets to cover the margin calls.

“We will continue to have sufficient capacity to meet our funding needs over the course of the short and medium term,” he said.

In a report published Friday, the Journal wrote that Citadel “is being asked by several major banks to post additional collateral to cover big losses on its investments.”

Last month, Citadel CEO Kenneth Griffin sought to squelch rumors that the firm was on the brink of collapse, and had called in the Federal Reserve and U.K. Financial Services Authority to discuss how to handle the implosion of the $16 billion firm.

RELATED STORIES

Citadel Denies Collapse Rumors


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note