'Citigroup To Close Global Distressed-Debt Business As Part Of CEO Jane Fraser's Overhaul' - CNBC
Portfolio Pulse from Benzinga Newsdesk
Citigroup is closing its global distressed-debt group as part of CEO Jane Fraser's restructuring plan, known internally as Project Bora Bora. The move aims to exit low-return businesses to meet Fraser's performance targets. This follows the recent shutdown of Citigroup's municipal-bond trading operations. The distressed-debt group, which deals with securities of companies near or in bankruptcy, has around 40 employees.
December 20, 2023 | 8:44 pm
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NEUTRAL IMPACT
Citigroup is closing its distressed-debt unit to focus on more profitable ventures, as part of a broader restructuring under CEO Jane Fraser.
Closing the distressed-debt group is part of Citigroup's strategic overhaul to improve financial performance. While this may lead to short-term costs due to restructuring, the long-term focus on more profitable areas could be neutral to positive for the stock. The impact is significant given the direct involvement of the company, but the exact short-term market reaction may be uncertain, hence a neutral score.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100