Citigroup Inc.’s stock
C,
was up by 0.7% in premarket trading on Friday after the bank said in an internal memo it’s shutting down its municipal underwriting and trading units by March 31 of 2024. Most of Citi’s municipal sales, trading and banking colleagues are exiting the bank, according to the memo, which was provided to The Wall Street Journal. “The economics of these activities are no longer viable given our commitment to boost the firm’s overall returns,” according to Andy Morton, head of markets and Peter Babej, interim head of banking said in the memo. It’s not clear how many people will be affected by this advance, but it comes as part of a round of job cuts underway at the bank. Citi has said it’s working to streamline operations under Chief Executive Jane Fraser, with plans to furnish more head count details in the bank’s fourth-quarter results due out on Jan. 12. Reports had surfaced recently that Citi’s municipal bond unit could be cut.
