Citigroup Plans To Close Global Distressed-Debt Business: Report

Zinger Key Points
  • Citigroup reportedly plans to close distressed-debt business amid CEO's overhaul.

Citigroup Inc C is reportedly planning to close its global distressed-debt business.

The bank is leaving businesses with poor returns as a part of CEO Jane Fraser’s overhaul, said CNBC.

The distressed-debt group, which trades the bonds and other securities of companies in or approaching bankruptcy, has about 40 employees, as per the report.

RelatedCitigroup Restructures, Targets 10% Senior Management Layoffs

This month, Chief Financial Officer Mark Mason disclosed the bank's largest reorganization in decades has cost about $1 billion for charges related to restructuring and severance, most of which are already booked in the first three quarters.

Also ReadCitigroup's Mexican Arm Banamex To Go Public In 2025, Following Corporate Separation: Report

Price Action: Citigroup shares are trading higher by 0.54% at $50.34 premarket on the last check Thursday.

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