# Prof. Marti Subrahmanyam on Citigroup's derivatives business

1 Faculty News September 17, 2014>

Excerpt from [Bloomberg](http://www.bloomberg.com/news/2014-09-17/citigroup-embraces-derivatives-as-deals-soar-after-crisis.html) -- "The tendency of banks to rely on each other to net positions means one firm’s failure can cascade through the system. The danger that one party can’t hold up its end of the deal is known as counterparty risk. It means even if positions are netted, every trade adds risk unless it’s fully backed by collateral, said [Marti Subrahmanyam](http://www.stern.nyu.edu/faculty/bio/marti-subrahmanyam), a finance professor at New York University’s Stern School of Business."

[Read more](http://www.bloomberg.com/news/2014-09-17/citigroup-embraces-derivatives-as-deals-soar-after-crisis.html)

Additional coverage in [Bloomberg Businessweek](http://www.businessweek.com/printer/articles/811092?type=bloomberg)