Citigroup to close down municipal bond-trading business - reports
American banking giant Citigroup has reportedly wanting to shut down it municipal bond-trading business, according to a leaked internal memo on Friday.
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05:45 22/11/24
In communications to employees, seen by the Wall Street Journal, the bank said it was closing the unit down by the end of March 2024.
“The economics of these activities are no longer viable given our commitment to increase the firm’s overall returns,” said head of markets Andy Morton and interim head of banking Peter Babej in the statement.
The memo confirms recent speculation that municipal-bond operations were on the chopping block, and the majority of its sales, trading and banking staff are thought to be leaving as part of the closure.
“We will maintain and further develop our investment banking activities in key sectors of public-private partnership including transportation, healthcare and clean energy,” Citi said.
“Citi has been active in the private placement market and we see opportunities to grow as the wallet expands.”