-- Daniel Flatt
Citigroup has created a task force to manage its assets related to subprime mortgage securities after the bank said it may write down up to $11 billion (after taxes) due to its $55 billion exposure to U.S. subprime mortgages that led to the departure of ceo and chairman Charles Prince.
According to Jeffrey French, press officer at the bank, the "Subprime Portfolio Group" will be headed by Rick Stuckey, who works in Citigroup’s risk management trading division and will be assisted by Mark Tsesarsky, Citigroup’s co-global head of securitized products. Both are based in New York.
Former U.S. Treasury secretary Robert Rubin and Citigroup board member said in a statement, "The sole focus of [the group] will be on managing the assets related to sub-prime mortgage securities and their resultant exposures, has been established. This unit will be separate from the other parts of our capital markets and banking business."
Further details on the size of the group and its exact activities could not be gleaned.