During the subprime crisis, those who profited from betting against subprime structured-finance products received a bad rap, especially if they marketed those same products.
Now it seems, according to Fortune, Citi (C) has found a way to hedge against the massive Independent Foreclosure Review Settlement that the bank is a part of.
The magazine writes:Sponsor Content
“For Citigroup, the stake in SourceHOV is a hedge of sorts, though perhaps an unintentional one. When Rust gets bank settlement business, including settlements like the one involving Citi, it generates revenues for SourceHOV, the company Citigroup owns. But should a bank be able to remove the sting of its own regulatory settlements with hedges like these?”