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It's Not Just 'Retail': Head Of European FX Sales Out After Citi Admits Massive Loss
All morning, mainstream media has been down-playing the insolvency of various retail-focused FX brokers using words like "contained" and even suggesting retail 'moms-and-pops' should not be allowed to trade FX. Now, we get more news from a non-retail institution:
- *CITIGROUP SAID TO LOSE MORE THAN $150 MLN ON CURRENCY MOVES
So should Citi be banned from FX trading too? It appears so - Citi's head of European FX sales is 'said to leave' the company.
- *CITIGROUP HEAD OF EUROPEAN INVESTOR SALES, FX, SAID TO LEAVE
As Bloomberg reports,
Citigroup Inc., the world’s biggest currencies dealer, lost more than $150 million after the Swiss central bank decided to let the franc trade freely against the euro, according to a person briefed on the matter.
The losses occurred on the New York-based bank’s trading desks and aren’t tied to its relationships with FXCM Inc. and other retail trading platforms, said the person, who asked for anonymity because the information hasn’t been disclosed publicly.
...
Citigroup Inc.’s head of European investor sales, foreign exchange and local markets, Alex Jackson, left the firm this week, a person with knowledge of the matter said.
His departure isn’t related to investigations into the rigging of the foreign-exchange market, according to the person, who asked not to be identified because the move isn’t public.
* * *
See what happens when you can't rig themarket?
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*CITIGROUP SAYS WILL JUST ROAST A FEW MORE MUPPETS TO MAKE THE QUARTER
... Well, how bad does Citigroup think this global currency losses will get? So bad that Citibank executives are starting to stimulate their own packages!
margin call monday coming up.
But Taco Tuesday is after that, so we'll be fine.
I'm Long nail guns...
Smartest guys in the room.
Bwahahahahahahahahahahah.
Couldn't have happened to a nicer group of people.
$150,000,000 is nothing. They are firing people over that? You can lose billions at JPM before you get shit canned.
Karma
Long Water Boards....
http://www.nydailynews.com/news/national/missing-aig-executive-dead-cops-find-body-family-article-1.2080940
Lead-lined water wings will get you every time.
"Citi's head of European FX sales is 'said to leave' the company"
The "head" should have been having someone sucking someone and know about this
ahead of time.
Dumbass
The "head" will leave the company a little before the rest of his body, which will be thrown into the river.
That's really the message to FX trading heads, isn't it? This guy either has to know the "unknowable", given that this information is very seccret. OR, he isn't supposed to be doing any FX trading as the head of the FX division. Either Citi didn't want him to trade or what they are saying is that you can trade but you will be fired if caught offside in a trade that would probably have been fundamentally sound notwithstanding a once in a lifetime currency move due to an unknowable CB policy change. Not that I'm crying for any of these banker dudes but really, what the fuck was the guy supposed to do? How is it that folks on ZH can see volatility ramping up as the currency war gets out of control but these asshats at the big banks are dumbfounded and the GoldmanSacs of the world are predicting the "normalization" of growth? Are they that fucking clueless? This whole system is one big house of cards swaying in the wind, can they not see that?
The head of f/x trading is responsible for net exposure and the underlying strategy as well as the total performance and open positions of all his employees.
followed by "come as your favorite Central Bank bailout" Wednesday.
When their derivatives blow up, we'll all be roasted.
http://www.zerohedge.com/news/2015-01-05/citi-next-aig-70-trillion-reaso...
Arent these the same derivs taxpayer now on hook for through fdic?
I thought that already happened and we are just waiting for the shock waves. NANEX is on it.
Nano nano...second.
Oh yes, and US taxpayers are covering the losses.
So who's gains are they?
SNB, who else.
No way they were going to take a hit.
In the case of FXCM, surely they were taking the opposite side of their punters, ie the safe bet and got roasted for it
ubs & credit suisse would be my guess
Nobody is bragging.
Damned unusual is it not?
Is this a result of Broker's betting against their clients and losing?
This skit never gets old for me
http://www.stupidvideos.com/video/just_plain_stupid/SNL_Global_Century_s...
Not sure how that gets downvotes. It's a classic.
"Wait a second. You're saying that you knew about 9/11 in advance?"
"Basically, yes."
Curiously, it is extremely hard to find that clip on the internet.
When will they learn to put bathing suits on when they swim?
Dear Congressional Fuck-tards,
Can we please have Glass-Steagal back now?
-Throxx
Are you kidding? FX as an asset class is basically exempt even from Dodd-Frank. It wouldn't do for the central banks to lose their "multiplier" in currency interventions, after all.
This Swissy Fit is nothing.
Wait until the speculators have mega leveraged trades in the Yen or the Yuan blow up.
Exactly.
And the bullshitting King Doelarr bulls will get fuckan roasted one of these days too. Book it down...it is coming.
Citi is where all GS and JPM rejects go.
This is very true.
Ehh no, DB is where all GS, JPM, MS, Citi, RBS, Barx, CS, and UBS rejects go..
No worry the taxpayers can bail you out.
Massive bailout #2. The banksters are laughing all the way to their private islands.
They are taking about millions, not even billions or trillions and you loose your job.
Where has this world gone to.
that's what i was thinking. every other day one sees these "banks" fined billions for something, of course admitting no wrongdoing, and no one is ever fired. just a cost of business.
wait. that's it. they get fined for breaking the law in a wildly profitable way. here this shmuck lost actual bank money with no offsetting profit.
can his ass.
Yeah, right. $150m loss my arse. When it comes to loss, camouflage it. When it comes to profits, fudge it up with big bang fireworks.
USD 150M is a rounding error.
Agree. Tack another zero on there at least.
Agreed. $150M is the executives' yearly bar tab there. Their true loss is most likely in the B's not the M's.
Mainstream media are idiots. They are also saying that 2014 was the warmest year on record. Meanwhile I've had the heater on all fall and winter in CA and when I was back to visit the east over the last two years I hadn't experienced such cold since the 1970s. Mainstream media no longer exists as far as I'm concerned.
They are full of shit. There wasn't a single day last summer in the DC area above 95. That is seriously unheard of around here. Most of the summer here was comfortably in the mid 80's. It was very bizarre.
Do these losses that banks are spitting out now include OTC contracts that were derivatives of the EUR\CHF, or are those still marked at unicorn value while all we are hearing about are realized losses?
don't worry about jackson, he got plenty
Yes I do and I am lookin' fer moar.
Got gold?
Pink slip was nailgunned to his head.
Where's the Kermit photo?
Confucious say, Swiss banker stay far away from nail gun.
this sux. the FAZmobile has been purring like a kitten since xmas and now it is hacking up a furrball on crap bank earnings. fargging bastidges.
Do you really believe Citi only lost 150million?
When all is said and done, I bet these FX brokers, banks and brokerage houses lost 100's of BILLIONS.
End of 1 will be interesting........see what the numbers say, and the explanation to go with them.
social losses and private profits...the FED, ECB, BOJ, etc will make them whole
Didnt Citigroup just push some derivative legislation through congress?
Hopefully soon there will be a groundswell of derision about derivatives.
US Constitutional Amendment may be 'in order' to stop all bailouts.
and
to not allow derivatives to be bailed out in any way shape or form since these are massively leveraged and not healthy for children and living things.
It wasnt their goddamn money in the first place...and even if it was, they'd just kite some poor bastards pension plans over into that account after the fact..whos gonna stop them?
Batman or Superman. Haven't seen them lately.
Not to fret, Gramma Jan is sending a couple of Duce and a Halfs loaded with Yeller Bucks over to C as we speak.
Oh my God I almost missed Obama and Cameron lying about how the NWO is going to start WWIII. They are live right now on CNBC
Transferring all their losses to Citi lehman & extort another ransom on top of the QE drip.
The very smartest, highly paid, self-absorbed, narcissistic, psychopathic men in the room said what?
And it once again proves my point that everything you have ever believed in was a mother fucking lie. Look at them?? Leveraged to 100-1???? Running around now knowing their world has come to an end??
Its the lies that fuck me off. My mother always told me she would rather have a thief as a liar, as you could always catch a thief.
These bastards are beyond contempt. Just be careful what you wish for you filthy cunts.
You just might 'Get' it.
Cunts
;-)
Is this when the chickens come home to roost?
More like an over salted quail sent back to the waitor.
Some large institutional investors' stop-loss orders (set slightly below 1,20) were executed below parity even by major investment banks as the bottom literally dropped out below the EUR/CHF. Courtrooms will surely be busy for much of 2015 sorting this mess out. Also stop-loss orders will be much scrutinized in risk management circles going forward...
His bigger fail was probably not finding a clever way to socialize the losses and pass them off to taxpayers.
150M is massive>???<<!!!???
Define massive. JP lost billions and it was 'contained'.....I am so confused about the English language as used by banks.
It is massive because it is a 'real' loss. Usually they make a few billion then get a fine of 5% of their profits - and even that comes out in their taxes. This time a loss is a loss - not a percent of profits!
Alex, we have to let you go. You should have used a bigger bribe to our insiders at the SNB so that we could have front run this collapse. You saved us pennies but cost us dollars. Don't let the door hit you in the butt on the way out!
Just another hole american taxpayers will fill.
I'm long tall Manhattan buildings
"His departure isn’t related to investigations into the rigging of the foreign-exchange market, according to the person, who asked not to be identified because the move isn’t public. "
of course not. who would have ever thought that.
All the scum bag derivitive traders I know are buying homes in retirement communities and renting them to the elderly because they are the only ones with a steady cash flow.
Can you imagine the ripple of delight that will go through the unemployment office when he pulls up in his Maserati?
They better have the SWAT Team on standby...
Glad the SNB elected to move without warning, otherwise ...remember the "Fire Sale" of the movie "margin call" ?
https://www.youtube.com/watch?v=v4P4cS5jKmQ
Headlines: Citi Banker accidentally trips & falls on nail gun, 10 times....!