Citigroup, Goldman Boosted French Bank Ties Before Rout
This article is for subscribers only.
Citigroup Inc. and Goldman Sachs Group Inc. increased gross exposures to French banks in the year’s first half before the European nation’s financial stocks plunged amid perceived dependence on short-term funding.
Citigroup, the third-biggest U.S. lender, boosted gross “cross-border outstandings” with French banks 40 percent to $15.7 billion from Jan. 1 through June 30, according to the company’s quarterly report. Goldman Sachs increased claims by 31 percent to $38.5 billion in the first half, its report shows. The filings don’t disclose collateral the banks received or hedges, which curb potential losses on existing bets.