- Wednesday, October 16, 2024
Citigroup Inc.'s stock (C, +1.82%) experienced a 0.7% surge in premarket trading on Friday. The bank has announced in an internal memo its decision to close its municipal underwriting and trading units by March 31, 2024. Citi's municipal sales, trading, and banking colleagues will be leaving the institution, according to the memo obtained by The Wall Street Journal.
Citi's Head of Markets, Andy Morton, and Interim Head of Banking, Peter Babej, explained that the closure was prompted by the unsustainability of the economics surrounding these activities in relation to the firm's objective of enhancing overall returns.
The number of individuals affected by this move remains uncertain. However, it is evident that this step is part of the bank's ongoing job reduction initiative. Citi aims to streamline operations under the leadership of Chief Executive Jane Fraser. Further details regarding headcount changes are expected to be provided during the release of the bank's fourth-quarter results on January 12.
Recent reports had already hinted at the possibility of Citi cutting back its municipal bond unit.
All Rights Reserved © 2024
Post a comment