Citigroup Wealth Unit Halts Margin Loans on Adani Securities
- Private bank unit removes lending value with immediate effect
- Move comes after Credit Suisse stopped accepting some bonds
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Citigroup Inc.’s wealth arm has stopped accepting securities of Gautam Adani’s group of firms as collateral for margin loans as banks ramp up scrutiny of the Indian tycoon’s finances following allegations of fraud by short seller Hindenburg Research.
The US lender’s move to restrict lending comes after a similar change at Credit Suisse Group AG, as Adani’s beleaguered empire becomes further engulfed in crisis.