Friday, August 10, 2007

Fun with hedge funds: Citigroup edition

(Continuing Marc Andreessen's series)
Citigroup has lost more than $700m in credit business in recent weeks, making it one of the biggest casualties of the crisis, according to a person briefed on the situation.

That's bad enough, as it is. Companies lose money, sometimes big chunks of money. But if you've said things like this, it becomes a bigger problem:
Mr Prince told the FT on July 10 that the lending party would end but there was so much liquidity at the time that it would not be disrupted by the turmoil in the US subprime mortgage market.

“When the music stop, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.”

Update: Now Financial Times says the hit is $700M, not $500M - I don't think we've heard the last of it.

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