Citigroup Inc. has arranged more than $7 billion of collateralized loan obligations in the U.S. this year through September, three times as much as the same period last year and more than any other lender, according to data compiled yesterday by Bloomberg and Morgan Stanley. It also caters to money-market funds, manages share sales in mortgage real estate investment trusts and runs a stable of internal credit funds. All are part of a shadow-banking system that offers complex forms of credit and that led to billions of dollars in losses during the financial crisis. While regulators across the glob say that they are scrutinizing this lending to prevent another calamity, banks including Citigroup, Goldman Sachs Group Inc. and JPMorgan Chase & Co. are among its biggest enablers.
