Citigroup Plans To Close Global Distressed-Debt Business: Report
Portfolio Pulse from Lekha Gupta
Citigroup Inc is shutting down its global distressed-debt business as part of CEO Jane Fraser's strategy to exit poorly performing operations. The division, which deals with securities of companies near or in bankruptcy, employs around 40 people. The bank's recent restructuring, including senior management layoffs, has incurred about $1 billion in charges, mostly accounted for in the first three quarters. Citigroup's stock was up 0.54% at $50.34 in premarket trading on Thursday.
December 21, 2023 | 10:58 am
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Citigroup is closing its distressed-debt business, part of a broader restructuring to focus on more profitable areas. The bank has already incurred significant restructuring costs.
The closure of the distressed-debt business is part of a larger strategic overhaul by Citigroup, which may be viewed positively by investors seeking better returns. However, the costs associated with restructuring have been significant, and the impact on the stock price is uncertain in the short term, hence a neutral score.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100