Finance
Citi’s Public Finance Exit Is Warning for Municipal Banking Industry
- UBS also halted most of its muni bond underwriting business
- Higher rates have hurt dealmaking in $4 trillion muni market
A Citibank branch in Washington, DC.
Photographer: Nathan Howard/BloombergThis article is for subscribers only.
Municipal bonds, often marketed by US banks as a do-good line of business, are taking a hit as Wall Street looks to cut costs.
Last week, Citigroup Inc. announced it would shutter its powerhouse municipal-bond department, marking the biggest departure of an underwriter since at least the 2008 financial crisis. The firm’s exit came after years of pressures that had already forced out some small shops.