Citigroup announces closure of global distressed-debt business

Citigroup is making significant changes under CEO Jane Fraser's leadership, shuttering its global distressed-debt group as part of a sweeping overhaul, sources familiar with the decision told CNBC. This move aligns with Fraser's strategy to streamline the bank, focusing on businesses with stronger returns.

The distressed-debt unit, which handles bonds and securities for companies navigating bankruptcy, employs approximately 40 individuals, the sources revealed, speaking on condition of anonymity concerning strategic shifts.

Fraser's restructuring aims to simplify Citigroup's structure, marking its most substantial transformation in nearly 20 years. This initiative includes leadership alterations, job reductions, and business closures to fortify the bank's performance metrics.

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Last week, Citigroup announced the closure of its municipal-bond trading operations, acknowledging the dwindling viability of the once-thriving business, which employed about 100 staff members.

Notably, Citigroup has remained tight-lipped regarding these developments, declining to comment on these reported changes or the recent restructuring efforts initiated by Fraser. The bank previously disclosed plans to terminate municipal underwriting and market-making activities, citing an infeasible economic landscape that conflicts with their goal of bolstering overall returns.