Citigroup Will Not Have Asset Fire Sale: WSJ
Citigroup executives say they have enough funding in place to support the $80 billion in structured investment vehicles (SIVs) the bank manages and won't be forced to sell assets at
distressed prices, The Wall Street Journal reported on its web site.
The bank has secured adequate funding through the end of the year after selling some $20 billion in assets since this summer's credit crunch, the Journal reported on Thursday, citing unnamed Citigroup executives.
John Havens, head of Citigroup's alternative-asset management unit, said the bank's SIVs have been able to sell "many billions of dollars" of short-term debt over the past week or so. In an interview with the Journal, he said losses on the sales have been much less than $1 billion.
A Citigroup representative declined comment on the matter.
Worries about banks having trouble supporting their SIVs in the wake of the mortgage market turmoil has led the Treasury Department and major banks such as Citigroup , JPMorgan Chase and Bank of America to work on the creation of a $100 billion fund to buy assets to reduce the impact of panic selling at reduced prices.