Citibank blocks investors from removing money from one of its funds. A run on the bank?

As much as the big financial companies would like us to believe they're OK from the subprime fallout, this is quite alarming.

Is this not that different from a traditional run on the bank?

"Citigroup has barred investors in one of its hedge funds from withdrawing their money, and a new leveraged fund lost 52 percent in its first three months, the Wall Street Journal reported Friday.

The largest U.S. bank suspended redemptions in CSO Partners, a fund specializing in corporate debt, after investors tried to pull more than 30 percent of its roughly $500 million of assets, the newspaper said. Citigroup injected $100 million to stabilize the fund, which lost 10.9 percent last year, the newspaper said."

Cripes!

Source CNBC

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