Why did Citi decide to shut down it's distressed debt division now of all times? Distressed activity is high compared to 2021-22, so wouldn't there be increased activity for the group? Some articles mentioned the business requiring lots of upfront capital and being cyclical, but I'm not sure why Citi didn't just downsize the group unless performance was really lagging.
| +3,955 | Bank of America - Juniors Strike to start Monday May 6th | 415 | 2h | |
| +840 | BOFA ALREADY TRYING TO COVER UP THEIR TRACKS | 79 | 19h | |
| +581 | This is a dark day for Wall Street. | 46 | 7h | |
| +402 | BofA Associate Death - WSJ, FT, CNBC, Bloomberg | 41 | 1h | |
| +188 | How to strike without being fired. | 21 | 13h | |
| +184 | Analyst at Bofa FIG-Thoughts | 28 | 19h | |
| +169 | Big Layoff at Barclays - 5/1/24 | 88 | 1d | |
| +161 | Hey WSJ, BBG, CNBC, FT, it's been more than 72 hours that this BofA IBD Associate was reported dead | 23 | 6h | |
| +150 | BofA List | 37 | 5h | |
| +127 | Shame on you, BofA. But also, the industry needs to change. | 17 | 16h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Because it isn't making money for them.
Shit bank making shit decisions…
Market making requires firm capital which is becoming increasingly more expensive in the current regulatory environment and most trading and distribution business are all or nothing investments in terms of personnel given you need sales, trading, research, and balance sheet to have an effective market making platform. Distressed debt trading has underperformed at Citi over past several years, has seen some major leadership departure, and has limited synergy with the rest of the business.
Alias assumenda adipisci sed veritatis. Numquam odio ratione maxime repudiandae vel placeat architecto dolorem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...