Citibank is rethinking its service to hedge funds after discovering it may have to book a $180 million loss arising from one Hong Kong-based client.
GF Holdings, a lesser known investment advisory company with a currency fund offering is headquartered on Des Voux Road in Hong Kong’s Central Business District is within walking distance of the large glass building that is Citibank’s headquarters.
The bad loans to GF Holdings has apparently prompted Citi to reach out to smaller hedge fund clients – those with less than $100 million on their balance sheet - to inform them that the bank will not be servicing them any more, according to a report in the «Financial Times» (article behind paywall).
The American lender is a leading player in the prime brokerage space.
