Citigroup’ private bank has decided to pull its $187 million investment from SAC Capital Advisors LP, according to people familiar with the decision, the latest in a string of client defections that have occurred amid scrutiny of the hedge-fund firm. The decision “should not be construed as a statement on the merits of any outstanding legal proceedings or potential regulatory action” related to the scrutiny, a Citi spokeswoman said in a statement to The Wall Street Journal Thursday. Federal law-enforcement officials have sought to build an insider-trading case against SAC for years, but recent developments, including the arrest of Mathew Martoma, a one-time portfolio manager at an SAC unit, and the firm’s acknowledgement that it was notified by securities regulators it may soon face civil charges, have shaken some investors. “In the event these legal and regulatory matters are resolved favorably for Mr. Martoma and SAC, Citi Private Bank expects to reconsider admission of SAC’s funds to its hedge-fund platform,” the spokeswoman said in the statement, adding that the decision to redeem was made following the private bank’s standard procedures. [WSJ]

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Comments (10)

  1. Posted by WalterJr | January 24, 2013 at 5:03 PM

    Time for a zamboni encore at Google.
    Because there is an 'I" in ice.

  2. Posted by Big Fan of Congress | January 24, 2013 at 10:52 PM

    If it's any consolation to SAC, Citi's "standard procedure" is to make a decision that will look dumb around 2 years down the road.

  3. Posted by chat | February 20, 2013 at 11:05 PM

    goods blogs thankssasd

  4. Posted by sohbet | February 20, 2013 at 11:05 PM

    goods blogs thankssad

  5. Posted by sohbet odalari | February 20, 2013 at 11:05 PM

    goods blogs thanksasdasdsa

  6. Posted by Wei | February 27, 2013 at 12:38 PM

    I don't know much of financial/banking subject. Citigroup as in Citibank?

  7. Posted by cinsel chat | March 11, 2013 at 6:59 PM

    Aylove you admince :p

  8. Posted by seks sohbet | March 11, 2013 at 7:00 PM

    Kıpardırmadan durabilirmisin sadace

  9. Posted by sohbet | March 24, 2013 at 2:28 AM

    we always do a great job with our layoffs.

  10. Posted by sohbet odalari | April 26, 2013 at 4:38 AM

    now much of financial/banking subject. Citigroup as in Citibank?