TWO Citigroup proprietary traders are leaving the bank for a hedge fund amid concerns that Washington will crack down on proprietary trading at big banks.
The traders, Matt Carpenter and Matt Newton, ran a proprietary trading unit for Citi, which has been under the thumb of regulators since it received a series of government bailouts. President Barack Obama last month proposed a law that would bar banks from betting in financial markets with their own money. Carpenter and Newton, and the long-short equity strategy they employed for one of Citi’s proprietary trading units, would have been affected if Obama’s proposals were enacted into law.
Carpenter spent more than 15 years at Citigroup, working as a managing director and director of US Equity Research. Newton was a managing director and a former head of single stock trading of US equities at Citigroup markets and banking.