Citigroup’s chief financial officer is eyeing the trouble in Washington warily, has dumped short-term Treasury bonds and, oh yeah, is sort of frustrated with the Federal Reserve too.
The bank’s top number cruncher, John Gerspach, said in a call with reporters Tuesday morning that Citigroup is no longer holding Treasury securities that mature on Oct. 31 or earlier. The bank is also working to make sure it understands the “operational aspects” of bond trading and double-checking that it has “adequate liquidity” on hand. And it’s not the only bank that is dumping its holdings of short-term U.S. government bonds as the country veers nearer and nearer to default.
Gerspach said he was hopeful that Washington lawmakers would work out a deal to avert a default.
“However,” he said, “hope is not a plan.”
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