Citigroup has been experiencing financial pains lately, which has caused the large bank to pull back operations. As previously reported by The Inquisitr, Citigroup had previously announced plans to cut 11,000 jobs in order to lower expenses. This decision would affect 140 countries, and, at the time, no word was said on how many American jobs were to be lost.
So with a heavy heart we must announce that Citigroup has decided to close 13 out of 21 of its Philadelphia region hearts by March 13. According to Google, Philadelphia’s unemployment is much higher than the national average at 10.8 percent. The silver lining, according to the Philadelphia Business Journal, is that “Citibank has roughly 800 employees in the Philadelphia region and about 90 positions will be affected by the branch closings … some employees will be offered positions within the company while the rest will be offered a severance package.”
Citibank currently plans on closing 44 bank branches throughout America, although specific locations have not yet been named. How many of those employees will be shifted to other locations is also currently unknown.
In order to stay afloat in the short term, Citigroup raised a AAA-rated $1.05 billion collateralized loan obligation (CLO) to be managed by Guggenheim Partners Investment Management. Bloomberg explains what a CLO is used for in financial markets:
“CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.”
The world market for CLOs topped $50.3 billion this year with 2007 setting a record $91.1 billion for such funds being raised.
Shares of Citigroup (NYSE:C) have been fluctuating wildly this year, ranging from $24.40 to $39.38 and is now at $39.06. Analysts expect a target price of $43.14 to be reached. Hopefully, as the banking business recovers Citigroup will be able to reinvestment into expanding in the future, bringing back some jobs to America.