The Citigroup Middle in midtown Manhattan is seen on this picture taken on July 14, 2014.
Timothy A. Clary | AFP | Getty Photographs
Citigroup It determined to shut its municipal underwriting and market-making actions, in keeping with a memo seen by Reuters.
The memorandum, signed by Citigroup’s head of markets, Andy Morton, and Peter Babbage, interim head of banking, stated: “The economics of those actions are not viable given our dedication to growing the corporate’s total returns.”
The memo added that the financial institution will dismantle the unit within the first quarter and that a lot of the staff there’ll go away. Discussions over the way forward for the unit led to the departure of a staff of bankers from Jefferies final month.
Bloomberg reported the memo earlier on Thursday.
Citi’s municipal providing enterprise has come underneath scrutiny by the Texas Lawyer Normal, who in January suspended the financial institution’s capability to underwrite most municipal bond choices in Texas, saying the financial institution discriminated in opposition to the firearms business.
