Citigroup is taking decisive steps to streamline its operations on Wall Street under the leadership of CEO Jane Fraser.
Sources at CNBC have disclosed that the bank has made the strategic decision to shutter its global distressed-debt group, aligning with Fraser’s overarching mission to reshape the bank’s future.
The move to close down the distressed-debt group is part of Citigroup’s broader strategy to exit businesses that have been yielding poor returns, a critical step towards achieving Fraser’s ambitious performance targets.
In a significant development, Fraser had unveiled a comprehensive overhaul plan for the bank in September, signaling her commitment to steering the third-largest U.S. bank by assets toward a more profitable trajectory.
This transformative initiative, known internally as “Project Bora Bora,” has seen Fraser take swift action to trim the bank’s executive ranks and streamline its various business units.
The recent announcement regarding the closure of municipal-bond trading operations reflects Citigroup’s proactive approach to refocusing its resources.
This division, which once thrived, had experienced a downturn in recent times and employed approximately 100 individuals.
Its closure symbolizes the bank’s dedication to optimizing its operations in line with Fraser’s strategic vision.
The distressed-debt group, which specialized in trading bonds and other securities of companies either in or approaching bankruptcy, was staffed by approximately 40 individuals.
While these changes are in line with Citigroup’s broader strategy, the sources requested anonymity when discussing these strategic maneuvers.
Citigroup has not provided an official comment on these developments at this time.
Nevertheless, it is clear that the bank, under Jane Fraser’s guidance, is making calculated and strategic moves to reshape its portfolio of businesses, shedding underperforming units to enhance its overall financial health and align itself with the CEO’s performance targets.
As Fraser continues to implement her vision, the industry will undoubtedly be watching closely to see how Citigroup evolves in the coming months and years.