Total income from the hedge fund business, including investment returns for its owners, exceeded earnings from Citadel Securities before 2018 and probably will again this year, according to a person with knowledge of Citadel’s results.

Still, the securities business continues to expand rapidly and is now vying to become one of the Fed’s primary dealers. These select firms trade directly with the New York Fed as it implements monetary policy, and they’re required to participate in U.S. Treasury auctions. Such a move might invite fresh scrutiny.

Last year, at the CNBC Institutional Investor Delivering Alpha Conference, Griffin was asked whether his firm had become too big to fail. He pushed back.

“If we weren’t there,” Griffin said, “the market would clearly function, and function in a competitive manner.”

This story was provided by Bloomberg News.

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