New York Times – Citigroup, the banking giant, moved Monday to shore up six of its hedge funds pressured by a tightening in the municipal bond market, the newest problem to entangle the struggling company.
The bank has committed to injecting $1 billion across six highly leveraged municipal bond funds with $15 billion in assets, which were sold to wealthy customers under the names ASTA and MAT. About $600 million had been provided as of last week, according to people briefed on the situation, after lenders issued a margin call in response to falling securities values.
The effort is the latest by the chief executive, Vikram S. Pandit, to stabilize the bank, which has been ravaged by the credit crisis
