Citigroup, with over $100 billion of undisclosed losses including it's off-balance shenanigans, is now closing another hedge fund, the Corporate Special Opportunity Fund, that will give investors 10 cents on the dollar. It's their 9th hedge fund to close this year.
Citigroup is liquidating its Corporate Special Opportunities hedge fund after it lost 53 per cent of its value last month, marking the ninth time in recent months that the bank has had to close or rescue a fund in its alternative investment unit.
CSO, which managed almost $4.2bn at its peak, has a net asset value of about $58m and debt of about $880m, investors say. People familiar with the matter say investors in the fund are likely to receive no more than 10 cents on the dollar.
http://www.ft.com/cms/s/0/2030a7bc-b5c5-11dd-ab71-0000779fd18c.html
This is the fund that Citigroup pumped in $320 million, and also gave it a line of credit for $450 million. It also put $1 billion of assets in the fund. Now investors will get 10 cents on the dollar.
This is the result of Citigroup's shenanigans that we can see. How about those shenanigans that we can't?
Why else would Citigroup trumpet that they were now going to modify mortgages for underwater homeowners? They raised rates on credit cards for those in trouble; now they are going to help those that don't need it?
Supposedly this stock is too big too fail.
It already has.
The only thing we don't know is the size of the rescue package!
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