The Citigroup Center in midtown Manhattan is revealed in this July 14, 2014 photo.
Timothy A. Clary | AFP | Getty Photographs
Citigroup has resolved to shut its municipal underwriting and marketplace-making things to do, according to a memo found by Reuters.
“The economics of these functions are no for a longer period feasible given our commitment to raise the firm’s in general returns,” explained the memo, signed by Citigroup’s head of markets Andy Morton and Peter Babej, interim head of banking.
The memo added that the lender will unwind the unit in the first quarter and that most people doing work there will depart. Conversations about the upcoming of the unit led to a group of bankers leaving for Jefferies past month.
Bloomberg documented the memo before on Thursday.
Citi’s municipal supplying business has been beneath scrutiny from the Texas attorney general, who in January halted the bank’s ability to underwrite most municipal bond offerings in Texas, declaring the financial institution experienced discriminated against the firearms sector.
