Citigroup Warning on Trading Revenue Drags Down U.S. Bank Shares
- Investment-banking revenue to tumble 25%, CFO Gerspach Says
- Bank also cites $400 million expense for restructuring costs
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Citigroup Inc. joined U.S. rivals in signaling another dismal start to the trading year, spurring a slide in Wall Street bank stocks.
First-quarter revenue from fixed-income and equity trading will probably drop 15 percent, Chief Financial Officer John Gerspach said during an investor presentation Tuesday. That would make 2016 the fourth straight year that the company’s revenues from those operations have declined in what is typically the industry’s strongest quarter.