Citi’s Punishment of Revlon Lenders Extends to CLOs, Trading (1)

Investors that kept money that Citigroup Inc. accidentally sent to Revlon Inc. lenders are finding that the bank is freezing them out from more than just new debt, with the blocking extending to credit lines, trading activities and most other business ties.

Among its moves, the bank has denied the firms warehouse financing critical to putting together collateralized loan obligations, according to people with knowledge of the situation. Beyond the CLO business, Citigroup is curtailing trading activities with the firms, the people said, asking not to be identified discussing a private matter.

Bloomberg News reported on Tuesday that Citigroup ...