The Citigroup Heart in midtown Manhattan is proven on this July 14, 2014 photograph.
Timothy A. Clary | AFP | Getty Photos
Citigroup has determined to shut its municipal underwriting and market-making actions, in keeping with a memo seen by Reuters.
“The economics of these activities are no longer viable given our commitment to increase the firm’s overall returns,” mentioned the memo, signed by Citigroup’s head of markets Andy Morton and Peter Babej, interim head of banking.
The memo added that the financial institution will unwind the unit within the first quarter and that most individuals working there’ll go away. Discussions about the way forward for the unit led to a group of bankers leaving for Jefferies final month.
Bloomberg reported the memo earlier on Thursday.
Citi’s municipal providing enterprise has been underneath scrutiny from the Texas legal professional common, who in January halted the financial institution’s capability to underwrite most municipal bond choices in Texas, saying the financial institution had discriminated in opposition to the firearms sector.