Friday's Headlines: Citi to relaunch exchange-traded derivatives business

Citigroup has hired 14 bankers, largely from rival J.P. Morgan, as it prepares to restart its exchange-traded derivatives unit, the Financial Times reports. This brings to 26 the number of bankers who will be working in the new business.

"The move is a sign that even as some banks have shed thousands of jobs amid anemic trading conditions, some are hiring in anticipation of the growth of services, such as clearing of OTC derivatives, propelled by the Dodd-Frank Act in the US and similar reforms in Europe," the Financial Times writes.

Citigroup is not the only bank preparing to benefit in this space, resulting in a war for talent as employers seek bankers with experience in collateral management and clearing.

Other News:

Standard Chartered to hire 2,000 around the world even as rivals cut positions. {Bloomberg]

Morgan Stanley plans to sell Saxon mortgage servicing unit. [New York Post]

Oppenheimer, Temasek to launch African asset management joint venture. [MarketWatch]

RBS to lay off 2,000 after posting first-half net loss on debt write-down. [Bloomberg]

China's ICBC buys stake in Argentina Standard Bank Group for $600 million. [DealBook]

Bank stocks around the world drop on fears about economy, sovereign credit. [BusinessWeek]

AIG to stay in mortgage insurance business despite industry woes. [Reuters]