Citi Shuns Treasuries Amid ‘Dangerous Flirtation’ by U.S.
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Citigroup Inc. is bracing for a possible U.S. default by avoiding some short-term Treasury investments amid what Chief Executive Officer Michael Corbat called “a dangerous flirtation with the debt ceiling.”
Corbat made the remark during a conference call today to discuss third-quarter results at New York-based Citigroup as lawmakers struggled to meet a deadline for avoiding a U.S. default. While the bank remains hopeful about a political solution, Citigroup doesn’t own Treasury securities that mature in October and holds few with terms ending before Nov. 16, Chief Financial Officer John Gerspach said.