Citi CEO: Tough luck, trader$

Citi Chief Executive Michael Corbat is keeping a tight hold on the purse strings.

The yearend bonus pool for trading desks that used to be Citigroup’s profit center will be flat, sources said.

The unchanged payouts are the result of a tough trading environment, in particular for the currency markets, where the bank has significant exposure, one source said.

It could be worse, however. Last year, traders saw their bonuses fall 2 percent.

Trading in bonds, interest rates, currencies and commodities has been listless due to intervention by central banks around the globe.

In addition to the tough trading environment, the thirdbiggest US bank by assets has paid out hefty legal and regulatory fees.

In 2014, Citi paid $7 billion to settle mortgagerelated claims and $600 million to settle currency rigging allegations. It took a $2.7 billion charge in the fourth quarter for legal expenses tied to settling charges it rigged currency and interest rates.

“Clearly we’ve been operating in a heightened legal and settlement environment,” Corbat said earlier this month, adding, “I think we’ve done a good job this year in terms of getting mortgage [issues] and … some other important things behind us.”

Citi declined to comment.