Citigroup Inc named veteran financial expert Richard Stuckey to manage most of its $43 billion of subprime mortgage assets, choosing the same financial heavyweight who helped unwind Long-Term Capital Management LP’s bad bets nine years ago.

Other managers of LTCM clean-up were David Rogers of Goldman; Conrad Voldstad, of Merrill; Michael Allen of UBS AG and John Fullerton of JPMorgan Chase & Co. Voldstad, now at New Jersey-based Arlington Hill Investment Management LLC, which runs a bond hedge fund, described Stuckey in an e-mail as “a good, solid professional.”
Stuckey, 51, will run the Sub-Prime Portfolio Group, created after largest US bank by assets said November 4 that it will write down as much as $11 billion of subprime debt and Chief Executive Officer Charles O ‘Chuck’ Prince III resigned.

Stuckey will oversee most of bank’s securities linked to homeowners with poor credit, according to a memo sent to employees and confirmed by Citigroup spokesman Dan Noonan. New York-based Citigroup owns subprime mortgage securities that rarely trade and are hard to value. The Long-Term Capital hedge fund was holding derivatives tied to interest-rate and equities that readily trade.

Citigroup said in a filing with US Securities & Exchange Commission that amount of assets it held that were hard to value rose 42 per cent in the third quarter. The company's Level 3 assets climbed to $135 billion at end of September from $95 billion at June-end.