Citi names new subprime head

Richard Stuckey, currently head of finance, G10 risk treasury and relative value at the bank, was previously head of risk management. Working for him in the subprime portfolio group will be Mark Tsesarsky, now head of special situations securitisation, who will be responsible for risk management.

Citi has a total of $54.7 billion exposure to US subprime loans, it announced on Friday, of which $11.7 billion is held in its lending and structuring business. The remaining $43 billion, which Stuckey will manage, consists of exposure to super senior tranches of collateralised debt obligations based on asset-backed securities. Of that, $25 billion is commercial paper secured by the tranches, and $18 billion is the tranches themselves. Citi said the positions would be managed separately from its fixed income, credit and commodity business.

Citi added that it would review its credit businesses in the coming weeks.

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