Former head of distressed-debt trading Rohit Bansal and former high-yield bond trading top dog Chris Yanney are out at Citigroup, Bloomberg reported, citing various unnamed sources. Yanney and Bansal are arguably two of the biggest names that have been publicized amid announced layoffs at the bank.
The news was reported just hours before Citigroup publicized disappointing fourth quarter earnings this morning of $0.38 EPS and $17.2 billion in revenue, coming in well below analyst estimates. As an unpredictable global economy rocked by the Eurozone crisis continues to batter markets and the Volcker rule—which has forced many banks to wind down trading operations—looms, trading revenues at many major banks have taken a concurrent hit.
At Citi, fixed-income trading revenue fell 16% in the first 9 months of 2011. The battering continued in the fourth quarter, as earnings this morning reported fixed-income revenue came in at around $1.7 billion, down 25% year-over-year.
It is unclear when Bansal and Yanney left Citi and if their depature was connected to the weakening trading revenues. A Citi spokesperson did not deny nor confirm the two departures to Bloomberg. The news comes a month after Citi announced over 4,500 layoffs, though Citi CEO Vikram Pandit confirmed this morning during Citi’s earning call that the layoffs will actually total around 5,000.
Bansal used to work at Goldman Sachs, but has spent a majority of his career at Citi. Yanney has previously worked at Morgan Stanley, Goldman Sachs and Barclays, according to Bloomberg.