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Citigroup Stumbled Into Risk-Control Lapse in July, WSJ Says

  • Funds recovered as executives find potential $400 million loss
  • Bank spokeswoman says Citigroup has no remaining exposure

A lapse in risk controls on a series of trades from a London hedge fund led to a panic at Citigroup Inc. in July that could have cost the bank as much as $400 million, the Wall Street Journal said.

Citigroup clawed back the money over the next three months, the newspaper said Sunday on its website, citing unnamed people with knowledge of the matter.