06/21/2008 05:12 am ET | Updated May 25, 2011

Citigroup's $800 Million Misfire

What do you call a hedge fund that has no outside investors? Closed.

Vikram S. Pandit, Citigroup's chief executive, knows that answer all too well. On Thursday, the bank announced that it was shutting down Old Lane Partners, the investment fund Mr. Pandit founded and sold to Citigroup for about $800 million when he came aboard last July.

Citigroup said it will purchase virtually all of the Old Lane's assets and absorb most of the trading operations into its investment bank.

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