Citigroup's Hedge Fund Group Draws SEC Scrutiny, Filing Shows

Citigroup Inc., the biggest U.S. bank by assets, said the Securities and Exchange Commission has requested records related to the firm's hedge funds as part of an informal inquiry.

Citigroup disclosed the review in a document filed May 28 in federal court in Manhattan, where investors in the bank's Falcon Strategies LLC fund have sued to halt a tender offer for their shares. Citigroup is trying to liquidate the fund, which has lost 80 percent of its value, according to court papers. The investors say they haven't been given enough information to gauge the value of their stakes.