Citi to Leave Emirates Interbank Offered Rate and 2 Other Hot Stocks to Watch
Citigroup (NYSE:C): Current price $51.66
On Monday, it was announced that Citi will exit the interbank interest rate setting panel in the United Arab Emirates on June 25, thus lowering the size of the panel from 12 to 11 banks. The change will further swell the dominance of local banks over foreign in the panel that sets the rate known as Eibor, which is used to price financial instruments in the Gulf’s number-one banking center. A Citi spokesman would not comment why it is withdrawing when contacted by Reuters. The central bank said that the exit followed Citi’s “globally implemented policy.” Since 2012′s scandal concerning manipulation of the Libor, banks have been considering withdrawing from panels which set indicative interbank rates, as they ponder dubious benefits of participation compared the potential risks to their reputations.