Bloomberg) -- Citigroup Inc. Chief Executive Officer Michael Corbat said volatilityprobably will rise later this year as investors get more aggressive to reach their annual goals.
Money managers have struck a defensive tone in 2014 and will have to take more risk in the second half to hit their targets, Corbat told analysts today at an investor conference. The latter part of this year may see Citigroup rid itself of OneMain Financial Inc., the subprime lender tagged for sale, he said.
“We find ourselves heading into June and people still have years to make,” Corbat said in New York, where the third- largest U.S. bank has its headquarters.
Citigroup is grappling with a slowdown in trading while dealing with setbacks that include a $400 million loan fraud in Mexico and rejection by regulators of a proposed dividend increase. Chief Financial Officer John Gerspach told analysts this week that second-quarter trading revenue could be down 20% to 25% from year-earlier levels in a market he described as “becalmed.”
Executives at JPMorgan Chase & Co. and Bank of America Corp. have also said this week that trading during the quarter has been sluggish.
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