Citigroup to Weigh Further Cutbacks in Trading, Investment Bank
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Citigroup Inc., the third-biggest U.S. bank, will consider further spending cuts at its securities unit after an investment of almost $1 billion in the business last year failed to boost revenue.
The lender, which last week announced 1,200 job reductions to save $600 million this year at the Securities and Banking division, will “further restructure” if revenue doesn’t rebound in 2012, Chief Financial Officer John Gerspach said on a conference call yesterday. Profit at the unit fell 24 percent last year to $4.9 billion as Europe’s sovereign-debt crisis rattled world markets, New York-based Citigroup said last week.