Citigroup's Municipal Underwriting Unit Shut Down, Raising Concerns of Wall Street Retreat

Citigroup has announced the closure of its municipal underwriting and market-making activities, citing the lack of viability and a commitment to increase overall returns. The unit will be unwound in the first quarter, resulting in most employees leaving. This decision follows a team of bankers leaving for Jefferies last month, and comes amidst scrutiny from the Texas attorney general regarding the bank's ability to underwrite municipal bond offerings in Texas.