Citigroup bets big on subprime market
We've noted a lot of bottom-feeding going on lately by private equity firms, hedge funds and Bank of America. Now comes an interesting bet on the subprime market by Citigroup. According to MarketWatch, the bank has exercised an option to acquire ACC Capital Holding's wholesale operations. That will give the bank an additional 2,200 employees and servicing rights to $45 billion in loans. ACC's retail operations are not part of the deal. So Citigroup apparently wants to keep its subprime asset-backed operations going. This will give them some supply. It will likely start originating new loans once the market shakes out.
For more:
- here's the MarketWatch article
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