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Comment: Rise in Financial Alchemy is Worryingly Familiar

By Tracy Alloway
February 6, 2015, Financial Times

Those searching for evidence of Wall Street’s never-ending wackiness need look no further than the man who is convinced investors are wary of corporate bonds because the debt is just too risky.

As detailed by Bloomberg this week, John “Mac” McQuown wants to create a hybrid security, known as an eBond, that would embed credit default swaps (CDS) into corporate debt. Doing so would automatically impart default insurance to each security, stripping out the so-called credit risk associated with issuers.

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Corbat’s Quest for Boring Clashes With Citigroup Trading Push

By Dakin Campbell
December 31, 2014, Bloomberg

Michael Corbat settled into an armchair at Citigroup Inc.'s Park Avenue headquarters in January and shared his strategy to make the bank boring. The past 11 months have seen him expand in businesses that are far from it.

Corbat, chief executive officer of the New York-based bank, extended his reach into commodities trading as other firms retrenched, kept a proprietary trading desk that takes a looser approach to new rules than some competitors and expanded the company’s derivatives business to make it the nation’s second-largest. At the same time, he has sold or plans to sell consumer units in 19 countries from Japan to Peru.

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Top Democrat Says Regional Banks Key to Wall Street Win on Derivatives

By Amanda Becker and Emily Stephenson
December 16, 2014, Reuters

A top Democrat in the U.S. House of Representatives on Tuesday said unpopular Wall Street banks got a long-sought rollback to Dodd-Frank reforms through Congress last week partly by leveraging the influence of smaller banks that hold greater sway with lawmakers.

"They have been working for a long time, trying different strategies on it," California Representative Maxine Waters said in an interview. "The big banks are in trouble with most legislators... so they put the regional banks in front of them in order to gain more support."

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Libor Banks Ask U.S. Judge to Dismiss 17 Rate-Swap Suits

By Bob Van Voris
November 6, 2014, Bloomberg Businessweek

Banks including Bank of America Corp., Mitsubishi UFJ Financial Group Inc., Barclays Plc and Citigroup Inc., asked a judge to throw out claims they cheated customers on interest-rate swaps and other Libor-based transactions.

The companies asked U.S. District Judge Naomi Reice Buchwald in papers filed in Manhattan federal court yesterday and today to dismiss claims in 17 suits growing out of “over-the-counter” transactions, or deals in which investors engaged in Libor-based deals directly with one or more of the banks.

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Derivatives House and Credit Derivatives House: Citigroup

By Christopher Whittall, Helen Bartholomew
Published December 16, 2013 International Financing Review

The seemingly unending overhaul of banks’ derivatives businesses in response to a changing regulatory regime left the door wide open for those that were first-movers in post-crisis recovery. For defying its critics to finally surge into the top tier across regions and asset classes with a model built to embrace the new regime, Citigroup is IFR’s Derivatives House and Credit Derivatives  House of the Year.

Regulatory intervention took a heavy toll on derivatives businesses in 2013 as the Dodd-Frank Act took effect, pushing over-the-counter swaps into central clearing and towards electronic execution, while tighter capital and leverage rules further depressed margins.

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Citigroup Currency Staff Work Into Night in London on Dodd-Frank

By Julia Verlaine
Published October 26, 2013 Bloomberg

For the foreign-exchange sales team in Citigroup Inc. (C)’s London office, Dodd-Frank regulations mean extra hours at work.

At least two members of staff have been staying until after 9 p.m. because some clients are no longer allowed to deal with Citigroup colleagues in New York, Alex Jackson, head of European investor sales, foreign exchange and local markets, said in a phone interview on Oct. 25.

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Citigroup Said to Hire BNP’s Gregorio in Credit-Default Swaps

By Mary Childs
Published August 15, 2013 Bloomberg

Citigroup Inc. (C) has hired Glen Gregorio, a derivatives trader at BNP Paribas SA for the past three years, according to a person with knowledge of the matter.

Gregorio will join Citigroup’s credit-default swaps group in New York, said the person, who asked not to be identified because the move hasn’t been announced. He departed BNP as of July 31, spokeswoman Cesaltine Gregorio said in a telephone interview.

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Banks to Cash In as U.S. Derivatives Reforms Go Live

By Douwe Miedema
Published March 7, 2013 Reuters

Banks have been complaining bitterly about new laws to sort out their industry, even though they were blamed for playing a part in the credit meltdown. But this time round, new U.S. rules look set to help them.

Starting on Monday, hedge funds and other large investors must guide their trading in derivatives through traffic control centers known as clearinghouses.

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Citigroup Says Dodd-Frank Drives Off Overseas Clients

By Michael J. Moore
Published March 1, 2013 Bloomberg

Citigroup Inc. (C) said it could lose overseas customers and Goldman Sachs Group Inc. (GS) may have to limit transfers of capital among its units because of new regulations designed to make the financial system safer.

New derivatives rules set by the Dodd-Frank Act may force foreign clients at overseas branches to comply with U.S. standards, a prospect some don’t find appealing, New York-based Citigroup said today in its annual securities filing.

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Citigroup’s Pandit Shows Love for Dodd-Frank

By Ben Protess
Published March 8 2012 NYT/Dealbook

Is Vikram S. Pandit the anti-Jamie Dimon? Speaking to a packed ballroom at the Waldorf-Astoria hotel in Manhattan on Wednesday, Mr. Pandit, the chief executive of Citigroup, championed an idea that most Wall Street titans would shun: regulation is good.

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