In­vestors send Citi stock up 6 per­cent

Cit­i­group

Austin American-Statesman - - BUSINESS - B

tions in Pak­istan, Paraguay, Ro­ma­nia, Turkey and Uruguay and fo­cus on 150 cities around the world “that have the high­est growth po­ten­tial in con­sumer bank­ing.”

The bank did not say how many jobs it will cut in the United States.

About 1,900 job cuts will come from the in­sti­tu­tional clients group, which in­cludes the in­vest­ment bank.

The com­pany will also cut jobs in tech­nol­ogy and op­er­a­tions by us­ing more au­to­ma­tion and mov­ing jobs to “lower-cost loca- tions.”

In­vestors ap­peared to like the move. They sent Citi stock up more than 6 per­cent on a day when most bank stocks were up only slightly. Citi ended the day up $2.17 at $36.46 a share.

Job cuts are a fa­mil­iar tem­plate in a bank­ing in­dus­try still un­der the long shadow of the 2008 fi­nan­cial cri­sis.

Banks are search­ing for ways to make money as new reg­u­la­tions crimp some of their former rev­enue streams, such as trad­ing for their own profit or mar­ket­ing credit cards to col­lege stu­dents.

Cus­tomers are still ner­vous about bor­row­ing money in an un­cer­tain econ­omy.

And they are still fil­ing law­suits over in­dus­try sins, like risky mort­gage lend­ing, that helped cause the cri­sis.

Citi fared worse than oth­ers. It nearly col­lapsed, had to take two

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