Citigroup, the third-biggest U.S. lender, is shutting down its proprietary trading unit that caused a revenue decline of 73 percent from equities trading in the third quarter, Bloomberg reports. It has blamed volatile market conditions for the losses incurred by the unit, known as Equity Principal Strategies.
CEO Vikram Pandit said the unit is being closed because of the Volcker rule, which aims to restrict banks from making bets with shareholder money. The unit’s head in London, Sutesh Sharma, is looking to quit the bank to start a hedge fund on his own. He has also worked with New York–based Morgan Stanley and Old Lane Partners.
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