Citigroup’s $150 Million in Currency Losses Deserve a Closer Look

by Pam and Russ Martens, Wall Street on Parade After blowing up in spectacular fashion in 2008, receiving the largest taxpayer bailout in the history of modern finance, Citigroup’s FDIC-backed bank, Citibank N.A., is allowing retail customers around the globe to gamble in the high-risk world of currency trading with leverage as great as 50 to 1. It has been more than four days since wire services reported that Citigroup’s trading desk had lost more than $150 million as a result of Switzerland’s central bank removing the cap on the Swiss Franc’s peg to the Euro. During that time, Citigroup does not appear to have demanded a correction or retraction. Thus, that much of the story has made it into the hands of the public. What is not widely known is that Citigroup, a global behemoth bank which is on a short tether by the Federal Reserve after failing its stress test last year and in previous years since its crash, is branding itself as the go-to place for retail clients wanting to gamble in the high-stakes world of currency trading with a starting account size as small as $10,000. In addition, the account can be leveraged up on margin provided by Citigroup’s insured banking unit by as much as 50 times. Continue Reading>>>

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