Citigroup's investment banking division is not having an easy time in Europe and is losing MDs, Bloomberg reports. But, Citi maintains it's hired new blood and will continue expanding.
First, the firm dropped from first place to eighth place in dispensing M&A advice on European deals, clocking in at $61 billion this year compared to $140 billion during the same period last year.
It only underwrote one IPO in Europe, the Middle East and Africa in 2009, a far cry from its days as a top 10 arranger from 2006 to 2008. During that period, it helped arrange 43 IPOs. Few are calling on Citi for offerings this year: 85 IPOs have taken place without its assistance.
In the U.S., it dropped from fifth place to ninth place in M&A advising, while in the Asia-Pacific region, it dropped a 13 spots -- from fourth to 17th.
As a result of all the (in)activity, at least 12 MDs have left their perches to go to the greener pastures at BofA and Barclays. Some told Bloomberg they left because of a dismal deal pipeline and the prospect of smaller bonuses.
Citi isn't crying over spilled bankers, however. In a statement, the firm wrote that it has hired "a number of important new senior hires" and will announce more in the coming weeks. It also said that its "banking franchise in Europe, Middle East and Africa is vibrant and expanding."
With all of the seeming trouble, however, will new recruits hop aboard?
Write to Julie Steinberg