Citi Pulls a U-Turn on Old Lane

The banking giant will close the hedge fund CEO Vikram Pandit co-founded, just a year after buying it.
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Citigroup

(C) - Get Report

is planning to shut Old Lane Partners, the hedge fund CEO Vikram Pandit co-founded, just a year after buying it.

Reports said Old Lane has seen returns dwindle and top managers leave the firm. Some of the fund's holdings will be integrated into Citi's securities and banking division. Citi paid more than $800 million for Old Lane last year.

Citi said bringing in Old Lane will boost its assets by $9 billion. Shares of Citi were recently up 3.6% to $19.91.

This article was written by a staff member of TheStreet.com.