Citigroup has made the strategic decision to close its municipal underwriting and market-making activities. The memo, signed by Citigroup’s head of markets, Andy Morton, and interim head of banking, Peter Babej, states that the bank is discontinuing these activities due to their lack of profitability and their impact on the firm’s overall returns.
In the memo, it was also announced that the wind-down of the unit will take place in the first quarter, leading to most employees departing from the bank. Earlier last month, discussions surrounding the future of the unit had already resulted in a team of bankers leaving the bank to join Jefferies.
Source (CNBC)
