Citigroup Exiles its Hedge Fund Administration Service

The administration business will function in a holding pen while the bank works out an exit strategy.

Citigroup no longer considers its hedge fund administration services part of its long-term strategic direction and will move the administration function into Citi Holdings, a division where non-core assets sit and wait for the next step.

Michael Corbat, Citigroup’s CEO, made the announcement during the bank’s fourth quarter 2014 earnings call on Thursday, saying that the bank would exit several non-core businesses in order to decrease the expense base and improve net income.

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