Citigroup weighs moving proprietary traders: report

NEW YORK (BestGrowthStock) – Citigroup Inc (C.N: ) is weighing moving about two dozen proprietary traders to desks that trade with clients as some banks try to find new positions for star traders amid financial regulation overhaul, the Wall Street Journal reported on Monday.

The move comes as the overhaul legislation heads to a vote in the U.S. Senate. One provision, called the Volcker rule after White House special adviser and former Federal Reserve Chairman Paul Volcker, would bar proprietary trading by banks for their own accounts unrelated to customers.

Some banks have already moved proprietary traders to customer-focused operations, the Journal said.

However, the potential impact of the new rules is unclear.

Regulators expect banks to argue for more risk-taking and test the limits of new rules, the paper said, citing unnamed sources.

Citi was not immediately available for comment.

(Reporting by Paritosh Bansal; Editing by James Dalgleish)

Citigroup weighs moving proprietary traders: report