Investments at Citi private funds frozen

According to the report in the Wall Street Journal new problems are coming to the surface at the private investment division of Citigroup over two funds that were overseen by Michael Froman, who left the bank's Alternative Investments unit in January to be a White House aide.

Citing people with the knowledge of the matter the paper reported that customers of one private-equity fund investing in infrastructure projects voted to keep it from making new investments as several major deals fell through, even as its co-head quit, while another smaller fund was shelved last year.

A spokeswoman for the Citigroup told that the Alternative Investments unit is "a highly valued part of Citi's core franchise" adding that the freeze on new infrastructure investments does not derail that fund.